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$30,000 limit- between terminated and active plans.


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Guest Laura Millwood
Posted

In a merger situation, when 3 companies terminate their existing plans (all done appropriately), then merge and start new plans (401(k) and MPPP), if possible, can they get $30,000 in the terminated plans, then get $30,000 in the new plans? I realize they will be limited to a deferral limit of $10,000 for the year. I was under the impression they would be able to maximize contributions in both plans, but there is some discussion that the participants would be limited to $30,000 across the terminated and active plans.

Posted

Excuse my ignorance, but could you be a bit more specific in describing the merger situation?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Guest Laura Millwood
Posted

There were three medical practices that rolled up into one.

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