one or two ADP tests

[Tom Poje]

plan is 'merged' into a MEP during the plan year. all the assets are transferred.

if I file the 5500 as a plan termination with a short year then does that mean the data can't be aggregated for ADP testing (because you can't aggregate plans unless they have the same plan year) or is this simply one of those things the regs don't truly address ...e.g. nothing changes at the company, everyone is still in the same boat, etc. so treat it as if nothing else has really happened. The rule for looking at an HCE says you combine all plans for deferrals, but that is if they have the same plan year as well.

interestingly enough the old plan has not been 'terminated' yet by amendment, simply everything transferred an no more contributions...

[Jim Chad]

FWIT I would say 2 ADP tests. Or I should say I would guess at 2 ADP tests. I have nothing to hang that on. I don't think this is covered in the regs.

[chc93]

I thought that unless the plan termination amendment creates a short plan year, the fact that the Form 5500 is filed for a "short plan year" doesn't create a short plan year. So if the amendment doesn't create a short plan year, you would still have the same 12-month plan year, just that the Form 5500 is reporting less than a 12 month period.

[BW]

Rev-Proc 2003-86 might help. As I read it each worksite employer is tested individually. Since the plan converted into the MEP I don't see it a s a plan termination. The employer could always de-convert back to a single employer arrangement so I think one test is the right answer.

The MEP provider may also be able to shed an opinion here.