Is '01 MP contribution required if merges with PS plan?

[Cathy from Chicago]

A. Company has a MP and PS on a calendar year basis.

B. Company wants to merge the MP into the PS plan.

C. Company hasn't made the 2001 MP contribution yet.

D. Can the company put the MP contribution into the PS plan or

does it have to maintain the MP until the contribution is made

and then merge?

[Archimage]

You do not have to maintain the MPP. You can just put the MPP contribution into the profit sharing plan for the 2001 plan year.

[Richard Anderson]

The 2001 MP contribution can be made to the PS plan after the merger, but the contribution must still be to a MP source within the PS plan.

At the 2001 ASPA DC conference the IRS said that any future forfeitures of MP source accounts after the merger can be reallocated as PS money.