MP merged into PS plan

[Guest tws]

Employer has an individually designed MP plan and a regional prototype PS plan. To merge the MP into the PS doesn't the PS have to be amended to preserve optional forms available under the MP, to require separate accounting of the MP assets etc? If so, can the employer adopt an amendment to the regional prototype plan or does the organization that offers the plan have to do so? Should the employer apply for a new determination letter for the amended plan?

[Guest Bob K]

The plan does have to account for the MP assets separately because they retain their attributes of J & S and no in-service distributions.

Many prototypes have language in the base document to cover this situation.

If not the proper wording can be found in Rev. Proc. 96-55. Of course, I would check with my prototype vendor before amending.

[Blinky the 3-eyed Fish]

If your current PS plan does not allow for in-service distributions before NRA, then it might be easier to simply amend the plan so that all monies are subject to J&S and not distributable before NRA. This saves you from separate tracking of the money types and most certainly would be an easy amendment to your existing PS prototype.

This, of course, is not possible if you currently have pre-NRA in-service distributions in the PS plan due to 411(d)(6).