Company purchased during the year

[Guest Ducksoup]

I am confused please help. The company I work for was sold during 2005 and a new Corporation was formed. Does the 401(k) Plan need a new EIN number? Also, should the audit of the plan be for the period from the sale to the end of the year (7 months)? Finally, do the assets need to be transferred to another account if we are keeping the same custodian and trustee? Thank you for your help!!!!!!!!!!!!!!!!!!!!!!

[Guest Ducksoup]

Also, I would assume that a I need a new Plan Document, etc!?

[JanetM]

Do you mean you were spun off into a new corp? Who sponsors the plan? You or someone else? Need to know more....

[Guest Ducksoup]

The new corporation sponsors the plan. Also the assets of the company were purchased by a group of investors and the company was renamed and a new corporation was formed. The new Corp applied and was incorporated by the Sec. of State. The employees are the same. If you need further clarification please let me know.

[JanetM]

The new corp has new EIN - plan plan could continue to use same EIN as before, just make sure the sponsor change is indicated.

Your plan has full year, you simply had change in sponsor. Nothing has to change - just make sure the documents reflect the change in the name of the corporate sponsor and life will be good. Don't forget the amendment to the plan if you change the name. Your trustee and other service providers might want something to show new plan sponsor also.