Nassau Posted May 25, 2007 Posted May 25, 2007 Can a 403(b) Plan merge into a 401(k) Plan and what are the ramifications of such a merger?
J Simmons Posted May 25, 2007 Posted May 25, 2007 403b annuities may be rolled into a 401k plan. So merger should be conceivable, but I know of no specific authority allowing or prohibiting it. It might be simpler to start a 401k plan, and then terminate the 403b annuity program. The new 401k plan could be designed so that each of the employees could have the option to roll their 403b annuity benefits into the 401k plan. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
QDROphile Posted May 25, 2007 Posted May 25, 2007 If you "terminate" the 403(b) plan, what would allow distribution? Distribution is necessary for rollover.
J Simmons Posted May 25, 2007 Posted May 25, 2007 Whoops! I missed that one. Thanks, QDROphile. I guess it's back to Nassau's merger question. You might take a look at Rev. Rul. 90-24, if you felt that the guidance there could be used by analogy given that 401k plans can now receive 403b annuity assets, albeit in 'rollovers' that would not apply in a merger. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Guest mike webb Posted May 27, 2007 Posted May 27, 2007 Rev Rul 90-24 only allows for transfers between 403(b) arrangements. There is currently no method of merging 403(b) and 401(k) plan assets.
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