Final 5500

[Guest jefe96]

Company A purchases Company B. Company B has a plan with a 3/31 PYE. Company B's plan is merged into Company A's plan in July 2004. There has yet to be a 5500 filed for Company B's 3/31/05 PYE. From what I've read and know since all of the assets were transferred from Co. B's plan in July 2004, then the final 5500 would be due 7 months from then, correct? I'm having a brain freeze and looking for affirmation.

[E as in ERISA]

The legal date of merger is generally earlier than the date of transfer of the assets. Generally the date the company is bought. The final 5500 would be filed 7 months from the legal date.

[JanetM]

I would use the date the compnay B plan resolution states they are merging into company A.

There is the ability, subject to coverage and other tests, to keep both plans so I disagree with E's statement that it would be the date the company was bought.

The date the Plans state the date to be is what is used. Didn't they have to communicate with participants that as of date X the plan will be come part of Plan A?

[E as in ERISA]

I agree with Janet's last statement -- use date of plan merger per legal documents -- it's what I was saying when I said "date of merger." To distinguish it from date that you actually transfer title to the investments.

I'm not sure about inconsistencies in first two paragraphs. First paragraph says to use date that the COMPANIES are merging. Which is wrong unless the plans also merge on that date. I believe that is generally true. But Janet says she disagrees with that conclusion. So I don't understand why she says use company merger in the first paragraph.

But in the end I think that we agree to use legal plan merger date per the legal documents.

[JanetM]

If A bought B they don't have to merge the plans if they can pass all the tests. The date of plan merger would be the date show in plan docs. Regardless of when the assets transferred.

I don't know of any trustees who would take assets in plan to plan merger without the proper documentation.

[401(k)guru]

I had always thought that you had to continue to file the 5500 until all assets were merged or distributed. As an example, the legal merger date is 12/31/2004 and the plan year end is date is 12/31 but the assets were not actually transferred until 2/28/2005. I thought you still had to file the 2005 5500 and it would have a short plan year ending 2/28/2005. Thoughts anyone?

[WDIK]

Thoughts anyone?

I think that I agree with the previous statements that it is based on the "legal" date of merger.

[E as in ERISA]

If you terminate, then you continue to file until final distribution to participants. If you merge, then you file the final as of the legal date.