Target Benefit Merger

[Guest Ashley]

Is merging a target benefit plan into a 401(k)/PS plan similar to merging a money purchase plan into a 401(k)/PS plan? Are there any additional pitfalls to watch for?

Thanks in advance for any help-

[Mike Preston]

It is identical. A target plan is nothing more than a money purchase plan with a different contribution and allocation formula. Treat it exactly as you would a money purchase plan (because it IS a money purchase plan).