Minimum Req's for Merger of two 401(k) Plans

[chris]

Co. X and Co. Y each maintain a 401(k) plan with exactly the same provisions -- eligibility/vesting/dist. options, etc. Co. X is to be merged into Co. Y as of 1/1/2007. There are 40+ participants in Co. Y's 401k and 6 participants in Co. X's 401k. Was considering at a minimum to have a short amendment to be signed off by both Co. X and Co. Y as well as trustees of each 401k reciting the merger of the two Co.'s and authorizing the merger of the Co. X 401k into the Co. Y 401k and the transfer of Co. X 401k assets into Co. Y 401k. Any additional issues? I have reviewed the protoype adoption agreements and they are mirror images of each other.

[J. Bringhurst]

Do the plans have the same investment options? Will you have to map funds and, if so, will there be a blackout period for which notice will be required? Any employer stock issues? You may also want to ask questions re operational issues so as not to taint Plan Y with any of Plan X's problems...What about provisions for predecessor service crediting, compensation definitions, definitions of disability (i.e., employer discretion versus LTD/SSA determinations)?

[JanetM]

Is this a control group? Or have you just created a multiple employer plan? If control group, then you add X as participating employer by amending Y plan. X does resolution to merge into Y.

If you have created a multiple er plan, you may have to create that plan first. Does the prototype allow unrelated employers?