Master Trust With One Plan?

[Guest Jay345]

Hello all,

I have a strange situation wherein there was a master trust with a few different plans participating. However, all of the plans but one have pulled their assets and are using a different trust.

1) Is the trust still considered a "Master Trust" event though there is now only one plan? I am assuming it is, since that is how it was set up.

2) If so, is the master trust still required to file it's own 5500?

3) If not, what would be deemed to be the "end" of the master trust? The date all of the other plan's assets left the master trust, or the end of the current year?

Thanks!

[QDROphile]

Do you have a reason not to clean up documentation, simplify, and file a single Form 5500 with the one plan?

[Guest Jay345]

Do you have a reason not to clean up documentation, simplify, and file a single Form 5500 with the one plan?

No, and as a matter of fact, that's what we suggested. But the trust company is informing the client that they don't need to terminate the trust. I think that is true, but why would they want to do that? Other than charging for two 5500s.

[Guest Jay345]

Do you have a reason not to clean up documentation, simplify, and file a single Form 5500 with the one plan?

No, and as a matter of fact, that's what we suggested. But the trust company is informing the client that they don't need to terminate the trust. I think that is true, but why would they want to do that? Other than charging for two 5500s.

I've continued digging and I believe the answers are as follows (in case anyone searches this later):

1) You can keep the master trust with one plan.

2) But you can also eliminate it and file one 5500.

3) The timing on termination dictates whether a short-year 5500 is required for the MT, as with all other trusts.

4) Time the termination of the trust for year-end in order to avoid the short year filing.

[QDROphile]

Please explain more about termination of the trust. Why does it need to be terminated in connection with the amendments that would be done to have it serve as the trust for a single plan and file a single Form 5500? If you don't get some pretty good answers from the trustee, you should consider changing the trustee in the process of amending the trust document to serve the current needs. Changing the trustee does not terminate the trust, either.