Merging 401(k) Plans

[Guest JPIngold]

Brain weary after a week at ASPPA and now trying to find the bottom of my desk, so please forgive the easy question, but I don't see these too often:

Company A has a 401(k) plan and Company B has a 401(k) plan. They are unrelated companies. They form a new Company C and want to establish a new plan and merge the other two plans into the new C plan. A was a safe harbor (k) plan and B was a (k) plan with a match. When we create the C plan (which will be a safe harbor (k) plan), do I need to include matching provisions in the C plan (although they won't be used) to "house" the matching contribution money that will come into the plan via the merger??? [Expanding on the question --- with the merger, it is my understanding that all monies transferred in to plan C retain their money source (401(k), match, SHNEC, rollover, etc.]

Thanks.

[Bill Presson]

Brain weary after a week at ASPPA and now trying to find the bottom of my desk, so please forgive the easy question, but I don't see these too often:

Company A has a 401(k) plan and Company B has a 401(k) plan. They are unrelated companies. They form a new Company C and want to establish a new plan and merge the other two plans into the new C plan. A was a safe harbor (k) plan and B was a (k) plan with a match. When we create the C plan (which will be a safe harbor (k) plan), do I need to include matching provisions in the C plan (although they won't be used) to "house" the matching contribution money that will come into the plan via the merger??? [Expanding on the question --- with the merger, it is my understanding that all monies transferred in to plan C retain their money source (401(k), match, SHNEC, rollover, etc.]

Thanks.

Yes, you should maintain a nonsafe harbor match source.

[QDROphile]

The C plan need not have provisins for matching contributions that will never be received as contributions. The documentation of the transfer of the matching contrbutions to the C plan, however that is done, should acknowledge that the matching contributions will be accounted for appropriately, which means separately if you want to be sure not to have unexpected trouble.