Single employer plan merging under Multiple Employer plan

[JoseS]

When a single employer plan transfers to a Multiple Employer plan, is this considered a termination of the single employer plan? or simply a merger under the Multiple Employer  plan? 

If this should be a termination of the single employer 401(k) plan, would the  plan be subject to the 12 month restriction to start a new 401(k)  - Participants were NOT  eligible to request distributions.

Thank you in advance for sharing your thoughts! 

[david rigby]

Not accusing anyone of anything, just asking (because sometimes people mis-type).

Is it a "multi-employer" plan or a "multiple-employer" plan?

 

[JoseS]

Thank you and corrected, I was referring to Multiple Employer Plan (MEP)

[Mike Preston]

It should not be structured as a termination.  To do so would subject it to the successor plan rules and preclude establishing the plan under the MEP for 12 months.