Merger of Non-ERISA and ERISA 403(b) Plans

[Christine Roberts]

Several not-for-profit organizations are contemplating a merger. One of the entities sponsors a 403(b) plan that is subject to ERISA (includes employer match), while two other entities sponsor non-ERISA 403(b) arrangements.

The entities sponsoring the non-ERISA plans will cease existence as part of the merger. Will employees of these former entities be able to transfer custodianship/trusteeship of their 403(b) accounts over to the surviving organization's ERISA 403(b) arrangement?

[MWeddell]

They should be able to elect to transfer their accounts to the ERISA plan. However, the employer cannot required that the amounts be transferred.

[Guest lworthington]

mweddell

if a tax exempt company has a 10pct mppp, should the 5500 reflect a 403b plan or a 401a plan.

the plan is with an insurance company and looks as if it is on a basic mppp plan for tax exempt employers.

i am wanting to terminate the plan and roll over the mppp contributions to the 401k plan.

do you see an issue with this?

please help