401k merged into ADP MEP, back to 401k

[Sixers]

Client started with 401k in 1986 (001), then merged into ADP MEP (filed 5500 on ADP EIN) then now wants to spinoff to 401k.  Is spinoff document 001 because they started with 001 prior to merger or 002? does predecessor service or prior year service apply in this case?  Is original effective date 1986 or 2019? 

[Larry Starr]

7 hours ago, 76401k said:

Client started with 401k in 1986 (001), then merged into ADP MEP (filed 5500 on ADP EIN) then now wants to spinoff to 401k.  Is spinoff document 001 because they started with 001 prior to merger or 002? does predecessor service or prior year service apply in this case?  Is original effective date 1986 or 2019? 

I vote for 001 and original 1986 effective date since it is a spinoff of the same plan.  I also don't think it will matter if you start using 002 and still keep 1986 as the effective date, but I would use 001.

Also, there doesn't seem to be a predecessor service issue (there is no EMPLOYER predecessor; ADP was never the employer - it looks like the same employer since 1986).  Likewise, I don't think there is any question that you are including all service (at least since 1986).

[Below Ground]

I would say 002 for a couple of reasons.  First, a spin-off results in a new plan.  Second, if you use 001 and use the 86 effective date, you will certainly need to explain at minimum what happened since your last filing of 001.  Didn't that Plan "go away" after the merger with the MEP ADP Plan?  002 with a current effective date is cleaner and doesn't create questions about missing 5500 Forms, IMHO.

 

[Mike Preston]

Depends on my mood.  I might use 002 or 003.  001 seems like it is setting up for just what BG describes, which I'd rather avoid.  

[hr for me]

I agree with NOT using 001 -- it will cause issues possibly with forms not being filed for years (dealt with this a decade ago and it was not fun). I'd keep it clean and use a later number