Takeover from MEP Plan

[austin3515]

Plan is leaving an MEP Plan. Can the new plan include a provision that says "If you were deferring 5% in the old plan, that election will be honored in the new plan"?

Similarly, can you include a provision that says "you're balances in the old plan will be trasferred to the new plan and be mapped to like funds?

[MoJo]

Plan is leaving an MEP Plan. Can the new plan include a provision that says "If you were deferring 5% in the old plan, that election will be honored in the new plan"?

Similarly, can you include a provision that says "you're balances in the old plan will be trasferred to the new plan and be mapped to like funds?

To accomplish what you are suggesting, I would simply structure it as a "spin off" of a portion of the MEP plan to the single employer. Nothing changes, except to the extent the employer chooses.

[12AX7]

I agree with Mojo, and I don't see any other way of doing this other than a plan spin-off. I don't think there would be a choice for the employer the way Mr. Powers describes this situation.