Merging Plans

[Logan401]

Can a Simple 401(k) Plan be merged into a Traditional 401(k) Plan?

[rcline46]

Merger of companies? Otherwise why? amend the simple k as of the beginning of a plan year.

[Logan401]

The client adopted onto an MEP, so they requested a merger of their Simple 401(k) into their successor plan.

[12AX7]

You will likely lose the SIMPLE status of the plan if it gets merged into a traditional plan mid-year.

[Logan401]

The SIMPLE plan ended contributions12/31/2012. The new plan was effective 01/01/2013. We plan on merging the SIMPLE into the traditional 401(k) plan they have with the MEP.

On a side note, I would also like to know if a DB plan can merge into a DC plan.

[Logan401]

Does the facts that DB plans have promised monthly benefits at retirement & most are covered by PBGC federal insurance valid reasons to not merge into a DC?

[david rigby]

On a side note, I would also like to know if a DB plan can merge into a DC plan.

Several prior discussion threads. See IRC 414(l). (That's a lower case L.)

[Belgarath]

See also ERISA 4041(e). Not directly on point, but often the next question that comes up.

[Logan401]

Thank you all. I found under IRC 414(l) where you can merge a DB plan into a DC plan. Very helpful information.

[rcline46]

I think you need to review the instructions to Form 5310-A which covers the mergers of plans.