Money Purchase Plan Merger

[Madison71]

If I am merging a money purchase plan into a profit sharing plan (Believe it or not....there are still some out there), do you typically freeze it first and then merge?

[Madison71]

.....additional facts include - the company wants to stop making mandatory contributions to a money purchase plan, is establishing a profit sharing plan and wants to merge the money purchase plan. Do I need to freeze the plan prior to the merger?

Thanks!

[K2retire]

Why not simply restate the MPP as a PS?

[Bird]

Why not simply restate the MPP as a PS?

Yeah, that. FWIW we do* typically add a sentence either changing the MP formula to 0% or otherwise saying that accruals are ceasing, and don't forget the 204(h) notice.

*"did" - I think they're all gone now

[Madison71]

I'm sorry....I need to restate those facts a bit. There is a Money Purchase Plan and a separate 401(k) Plan with discretionary profit sharing plan already in place. Company was contributing to the MPP and the 401(k) plan, but is now looking to merge in.

[Jim Chad]

FWIW The best approach I found was to freeze the MPP and after it was fully funded, terminate it. I encouraged people to roll to the 401(k) plan but since they all had the option to take the money, all of the Joint and survivor notice requirements went away.

[K2retire]

FWIW The best approach I found was to freeze the MPP and after it was fully funded, terminate it. I encouraged people to roll to the 401(k) plan but since they all had the option to take the money, all of the Joint and survivor notice requirements went away.

A great option if the employer is not concerned about the termination triggering 100% vesting.

[Madison71]

FWIW The best approach I found was to freeze the MPP and after it was fully funded, terminate it. I encouraged people to roll to the 401(k) plan but since they all had the option to take the money, all of the Joint and survivor notice requirements went away.

A great option if the employer is not concerned about the termination triggering 100% vesting.

Thanks all - dumb question, but what is FWIW?

[GMK]

[Thanks all - dumb question, but what is FWIW?

for what it's worth

(there are no dumb questions)

[Madison71]

....thanks.