Mid-Year Open MEP Conversion - 5500 Filings

[The 402"(G)"]

Hi all,

Hopefully someone can help, I've searched and not much has come up on the subject.

We have a plan that consists of 4 groups. (A,B,C,D) Group A would do administration and training for the other 3 groups. Recently, ownership and roles have changed and it made more sense to convert the plan to an open MEP. Group A still handing the work regarding the plan and letting the other groups adopt provisions within the plan.

In past years and from 1/1/2016 to 6/30/2016 it was all in 1 plan, 1 5500. Filing with Group A's data. From 7/1/2016 to 12/31/2016 (and beyond) it is going to be treated as an open MEP. 4 5500's going forward.

My question relates to the 5500 filing for this conversion year. It would seem two scenarios are at play, and I'm having trouble finding guidance:

Scenario 1 - A 5500 filed for 1/1/2016 to 6/30/2016 showing a transfer out of all the assets. This would be due 4/15/2017 with extension. Then 4 5500's for the 4 groups 7/1/2016 to 12/31/2016 with assets transferred in.

Scenario 2 - Since Group A will exist throughout the whole process. Group A files a 5500 from 1/1/2016 - 12/31/2016 - showing a transfer out of the other 3's assets. Then the other 3 groups file their 5500's from 7/1/2016 to 12/31/2016.

We are leaning towards Scenario 2 but unsure. Thank you in advance!

[CuseFan]

so you always had a multiple employer plan but satisfied "commonality" from DOL perspective and now you don't? i think you have to go with S2. Using S1 would only make sense if plan terminated. How would/could you file for A under S1? there's not a lot of guidance on this sort of stuff with 5500's - i'd just do what is reasonable and defensible, Scenario 2.

[The 402"(G)"]

CuseFan

We actually didn't have a MEP initially. It was more of a controlled group situation.Circumstances changed over time and a change in ownership, ect. So we did a change 7/1 to an Open MEP.

But from additional research and talks with people it does seem that Scenario 2 is making much more sense.

Thank you!