Unsigned Plan Document

[Guest SAS3]

After reviewing prior posts, it seems as if it is no surprise when a takeover plan document is unsigned. Has anyone come across a situation in which a company acquires another company (let’s call the other company, “Target”). Target has a signed 401(k) prototype plan. Prior to sponsoring the prototype plan, Target sponsored an individually designed plan, which was never signed. The prototype vendor used the unsigned document to create the prototype and never asked for anything more. Company wants to merge Target’s 401(k) plan into its own 401(k) plan but is concerned that Target’s prior unsigned individually designed document will taint its 401(k) plan. Should we simply ignore Target’s prior unsigned document, or is this a real concern that would justify a VCP filing?

[FormsRstillmylife]

So, you don't file for VCP and file your plan for its next cycle determination letter. You have to disclose that there is this merged plan. The IRS reviewer says send everything back to when the merged plan had its own determination letter. Welcome to Audit CAP based on your entire plan, not just Target.

[QDROphile]

What does "signed" mean? It is evidence of a required event that has come to be mistaken as a requirement itself. You may be able to find other evidence of the event.

[Peter Gulia]

SAS3, is there a financial consequence that might make it undesirable to the Buyer organization to decline to assume, or allow Buyer's plan to accept a merger from, the Seller organization's plan? Unless there is a significant difference between immediate vesting or recognizing forfeitures under Seller's plan, what financial consequence might that be?

Is Buyer's acquisition a stock purchase, or an assets purchase?