Final 5500-EZ for MP after merger?

[Guest RONNIE WASEL]

Facts: Employer has coupled MP and PS plans, that will be merged in 2002. Plans do not meet the over $100,000 limit to file a 5500-EZ.

Question: After merging the MP plan into the PS plan, is it neccessary to file a final 5500-EZ because the MP has terminated although it is being merged, and the plans have never filed 5500-EZ's before.

Thanks,

Ronnie

[jaemmons]

According to the 5500-EZ instructions you will need to file a final for the MPP. Under "Who May Not Have To File" there is a note which indicates that "all one-participant plans must (bold-type) file a Form 5500-EZ for their final (bold-type) plan year even if the total plan assets have always been less than $100,000..."

That's pretty direct statement, so I would file a final EZ for the year of merger.