Plan Termination/Merger?

[Guest rachd]

Many of our Money Purchase plans are "merging" into the employer's existing 401K/Profit Sharing plans. I am wondering how this is supposed to be noted on the Schedule I- specifically I am talking about line 5a where it asks "Has a resolution to terminate the plan been adopted during the plan year or any prior year? If yes, enter the amount of any plan assets that reverted to the employer this year." I am filing the final 5500's for these plans.

Does merging count as "terminating" the plan? If so, I had some forfeitures from distributions that took place (but the distributions were not because of the plan merger). Should this amount be noted in the blank? It doesn't sound right to me but I am not sure.

Thanks again for your help,

Rachel Diederich

[Kirk Maldonado]

Rachel:

A plan merger is not the same thing as a plan termination.