MBCarey Posted July 30, 2003 Posted July 30, 2003 Effective 2003, we merged a MP plan into an exisiting PS plan. Both plans had plan year ends of 9/30/2002. When the plans were merged the plan year was also changed to a calendar yer. I am doing 5500 filing for a short plan year from 10/1/2002 to 12/31/2002. This will not be the final filing for the MP plan as the money did not officially transfer to the PS plan until March 2003 so I believe I will have to complete the final filing in 2003. Am I correct? Also, for the money purchase plan that was merged into the PS plan, how do I complete Schedule R for the short plan year as well as the final return regarding minimum contributions as there were none. The 10% contribution that was being made to the MP plan in the past will not be made to the PS plan.
E as in ERISA Posted July 30, 2003 Posted July 30, 2003 If the documents are prepared properly on a merger (with both the plan and trust amended effective on the same day), then you wouldn't file a 5500 for the MPPP after date of merger. The assets should legally belong to the PS trust at that date. The MP trust is legally zeroed out at that date, even if the physical possession has not been transferred. (That is different than a termination -- where you can't zero the trust out until you actually distribute).
MBCarey Posted July 30, 2003 Author Posted July 30, 2003 Would the filing for the short plan year be the final for the MP Plan?
Archimage Posted July 30, 2003 Posted July 30, 2003 If the effective date of your merger is 9/30/02 then you would not even file short plan year 5500. If your merger is 10/01/02 then you would file a 5500 for the plan year beginning 10/1 and ending 10/1.
MBCarey Posted July 30, 2003 Author Posted July 30, 2003 The effective date of the merger was 1/1/2003.
E as in ERISA Posted July 30, 2003 Posted July 30, 2003 You probably have a PS plan short year filing for 10/1/2002 to 12/31/2002, and a MPPP plan short year filing for 10/1/2002 to 1/1/2003 but it depends on the exact wording of the documents.
E as in ERISA Posted July 30, 2003 Posted July 30, 2003 Why didn't you merge the plans effective 9/30/2002 if you weren't planning on doing a contribution for the short year? I don't think that the funding requirements in a merger with a short year are clear. Hopefully legal counsel has analyzed them and can provide insight on how to best answer the 5500 questions.
MBCarey Posted July 30, 2003 Author Posted July 30, 2003 Kathryn, After looking over the end of year statement from the previous investment company, it does look like they made the 10% contribution for what wouldbe the first Quarter of the 2002 plan year. So that answers the question for the Schedule R. Still would the short plan year filing for the MP Plan be the final even though the money did not transfer until March. Employer contributions were made to the plan in the first quarter of 2003.
E as in ERISA Posted July 30, 2003 Posted July 30, 2003 If you're doing the books on an accrual basis, you would accrue the contribution for the year and then the transfer out would include the value of the receivable.
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