Prototype - Now a Multiple ER

[PFranckowiak]

Company part of a controlled group was sold. No longer a controlled group.

They are on a Prototype 401(k) Plan and want to keep the other company in the plan until the end of the year per the agreement of the sale.

Since it is now a Multiple Employer Plan as of last week, what needs to be done with the plan document?

Can I keep them on the prototype until the end of the year - and then they are off on their own to set up their own plan or do I have to do an Volume Submitter plan for the rest of this year because of the change?

How long do I have to make these changes? As always - we find out after the fact.

Ideas - thoughts???

Thanks

Pat

[R. Butler]

The prototype plan & trust agreement should address the issue. There should be a section on affiliated & the issue will likely be adressed somewhere in that section.