PEO Converting to Multiple Employer Plan

[Guest tws]

PEO sponsors individually designed single employer plan. PEO wishes to comply with Rev Proc 2002-21 and decides to convert to a multiple employer plan. PEO also wants to adopt prototype plan in place of individually designed plan.

PEO intends to amend current plan to convert it to multiple employer plan prior to May 2 deadline. If PEO adopts prototype multiple employer plan after May 2 and before the end of the year must it request a determination letter as required by Rev Proc 2002-21 with respect to the current plan or the prototype plan?

[Guest asire2002]

To my knowledge, there is no such thing as a true prototype document for a multiple employer plan. So, yes, it will need to request its own letter.