Changing EIN on Plan

[Taffy Auditor]

Hi,

We have a plan we recently became the auditor/5500 preparer for that is a multiemployer H&W plan.  One thing that was noticed in discussion with legal counsel and trustees was that the EIN for the Plan is different than that of the EIN of the Exempt Trust.  It looks like the EIN used is actually the same as what is also used for the Pension and Annuity Plans, but obviously uses a different plan # (in 500's). 

This 5500 has been filed for many years under this EIN, while the Trust files the 990 under its EIN.  The #'s agree between the 990 and 5500 (that is to say there is no other Trusts under this Plan # for 5500). 

The Trustees would like to have both the 5500 and 990 EIN match to the exempt Trust EIN (same as 990).  So, we were looking into the best way to handle changing the 5500 filing EIN.  There doesn't appear to be any way to easily just change an EIN for a plan and keep going on with that plan as if nothing else changed.  So, our first thought was we would likely have to file a final 5500 (probably at year-end would make sense) and zero out all net assets and transfer out.  Then on 5/31/19 have an initial 5500 filed under the Trust EIN showing the transfer in of all net assets.  Does this make sense to handle this way or is there a better way to handle this? 

As usual, the IRS was not very helpful and this is definitely a situation we've never encountered. 

I know with the final 5500 we'd need to include our audit.   Would we have to include an audit with the initial 5500 as well?  Or not until 2020 year-end?

Are there other items we need to consider in this whole process? 

One thing I wanted to verify with Plan Management/Legal counsel is that everything is under the Trust's EIN and not the Plan EIN we are closing out. 

Any feedback would be appreciated.

-Taffy

[C. B. Zeller]

Line 4 on the 5500 is used to report a change in the name and/or EIN of the plan sponsor.

Note that it is the plan sponsor's EIN that should be used on the 5500. Maybe there is something I don't know about the multiemployer plan world but usually the plan sponsor is not the trust. See the instructions for line 2 for the definition of plan sponsor.

The EIN for the trust is probably reported on Schedule R of the 5500 as the payor that paid benefits.

[Luke Bailey]

For a multiemployer plan with a joint board of trustees, that board is treated as plan sponsor and it should get (sounds like it has) and use that EIN. Below if from 5500 instructions, page 16:

If the plan sponsor is a group of individuals, get a single EIN
for the group. When you apply for the EIN, provide the name of the group, such as ‘‘Joint Board of
Trustees of the Local 187 Machinists’ Retirement Plan.’’ (If filing Form SS-4, enter the group name
on line 1.)
Note. EINs for funds (trusts or custodial accounts) associated with plans (other than DFEs) are
generally not required to be furnished on the Form 5500; the IRS will issue EINs for such funds for
other reporting purposes. EINs may be obtained as explained above. Plan sponsors should use the
trust EIN described above when opening a bank account o              ing
other transactions for a trust that require an EIN.