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Posted

Two calendar year 401(k) Plans merge effective January 1, 2000. Each Plan will have a different profit sharing contribution amount for the 1999 year. Does the profit sharing contribuiton for the 1999 year have to be in by the effective date of the plan merger, or does the employer still have until March 15th to make the contribution under each Plan's 1999 allocation formula?

Guest ptpnthr
Posted

I haven't thought a lot about this, and somebody please correct me if I'm wrong, but the merger will merge two plans that have accounts receivables due from the employer by 3/15. The plan (and the participants) accrued that accounts receivable under the terms of the old plans. Also, if both plans have the same date, wouldn't the new plan? So even if new plan were relevant, it would be the same date.

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