Form 5500 for Merged Plan

[ERISA25]

We have a situation where the merger of two plans within same company occurs on 13/31/10, but assets will not be transferred until 4/01/11. It's always been my understanding that the date of the merger is controlling for purposes of Form 5500, so that in this case legal control of the assets transferred on 12/31/10 and the former plan will file a final 2009 Form 5500 and will not file for 2010. I have read previous posts on this point and that seems to be the consensus, but I am unable to find any guidance supporting this position. Can anyone cite to some guidance on this point?

[Guest Form5500]

The date of the final Form 5500 is not the date of the merger, but the date the plan has zero assets, liabilities or participants at the end of the plan year. Here's the IRS link that concurs: http://www.irs.gov/retirement/article/0,,id=110293,00.html

The final Form 5500 should be PY 2011.

[rcline46]

Without actually reviewing the link, there should have been a Resolution merging the plans as of a date (and should be at least 30 days prior to the merger). At that date therplans are merged and the trusts are merged. Liquidation and retitling cannot take place BEFORE the merger, so it has to happen after the merger, and it cannot take place instantly.

In our practice the final 5500 is as of the merger date.

[david rigby]

Physical location of the assets is not the controlling factor, but which plan has legal ownership of those assets. If the merger document(s) are clear on that point at 12/31/10, then 2010 is the final plan year for that plan, and the Schedule H/I should show zero assets at EOY.

Don't forget lines 2L and 5b on the H/I.