Merging Money Purchase Plan into Profit Sharing Plan

[Guest Ottrose]

Since there seems to be no reason to have the two plans anymore, I wanted to simplify life and merge the two plans into one profit sharing plan. However, I didn't set up the plan and have no idea about where the original documents are.

What steps would one need to take to: (1) Get plan origination information, if it ever existed; (2) Since it probably didn't, are there remedial steps to take ala communicating with the IRS, etc.; and (3) go merge the two plans once I'm confident they both are above board?

Any help would be greatly appreciated!

Ottrose

[Blinky the 3-eyed Fish]

By original documents, what do you mean? Do you have the current plan documents?

[Guest Ottrose]

Unfortunately, no. I have no official documentation on the plan whatever. It's for a small (OK, tiny) business that has had staff turnover and things are kind of messy.

[Blinky the 3-eyed Fish]

You can't administer the plans without the docs and you don't know if the plans have been amended for GUST. I would say trying to merge them is the least of your problems. I seems this is like a mechanic working on your car, but you don't know where your car is. My advice is to back away from these plans slowly.

[mbozek]

O: the question is how much is your client wiling to pay to determine the current status of the plan in order to merge it with the PS plan. If you cant find the document at least see if you can locate the most recent IRS determination letter. Has the client been filing 5500 forms? Is there an SPD? It seems that the client is too small to have the financial resources necessary to determine whether there is a plan document whichis qualfied under current law.