plan consolidation

[thepensionmaven]

Client is a PC with 2 dentists and 8 employees.

There are two investment accounts, both are pooled and are being allocated on the "balance forward" method.

Somehow, there are two plans, two sets of 5500s, both plans identical in form

We just took over the plan(s) for 2016 and advised the two plans should be merged

We had the client adopt a merger and transfer agreement in essence transferring the one "plan" into the other; but since the accounts are commingled, it would appear as there is no need to go beyond this step?

Does this necessitate preparation of 1099Rs ?

 

[ETA Consulting LLC]

It does not because there is no distribution.  There is a plan to plan transfer.  So, on the final Form 5500 of the transferred plan will have a zero ending balance with the transferred out amount completed.

Good Luck!