terminated plan

[stevena]

I asked this on the terminted plan board, but it does not get much activity, thought i would try it here.

I have a company that terminated their k plan in January of 2005 when they got bought out by another company. The February deferrals started going to the new company's plan.

Do I test the terminated plan just for Jan. deferrals?

Something feels wrong about that...?

thanks all

[Guest Bud]

Yes, just test January deferrals and base ADPs on their annual comp.

(that should generate some responses)

[RCK]

OK, I'll bite: why would you count comp from a different employer?

[stevena]

I worded it incorrectly. They didnt get bought out, it was a merger.

So I am thinking the employer is the same, and that they would test all the contributions, regardless of what plan they went to, together?

I am totally clueless.

[austin3515]

There's a few options - one is test the companies totally separately, the other is to aggregate and test together.

This gets pretty complex, there's a nice write-up in the ERISA outline book. You should definitely take a look before issuing anything.

[stevena]

thanks, I read a bunch, I think honestly I dont know enough details about the merger, and that is why I am confused about it.

I am going back for more info, then will attack the ERISA outline book

thanks!~