ADP TotalSource and 5500

[thepensionmaven]

We have just learned the client was under the ADP Total Source admin and 5500s and have subsequently adopted our VS plan as an amended plan with the original effective date.

The ADP plan was effective 8/1/2008 but under the ADP Total Source as Employer/Plan Sponsor as well as the Plan Name.  ADP files one 5500 for all its clients and attaches a listing the name and EIN of each adopting employer and its EIN.

Obviously, DOL has no record of our client's ever filing a 5500 under their own Sponsor Name.  We took over the plan in 2016.

To DOL, wouldn't  this be considered the "initial return"? With $0 at beginning of year, the converted value of the investments as a "transfer"?

Would the effective date be the original, 8/1/2008 or 1/1/2016?

[ETA Consulting LLC]

You're basically creating a separate plan as of the date of the "transfer in" from the Total Source Plan.  This appears to be the classic definition of a spin off; so you should use 2016.

Good Luck!