Guest W J Parks Posted August 31, 2000 Posted August 31, 2000 I am having a "difference of opinion" with an associate about the following. A client with a 10% MP Plan wants to terminate it and start a new 401(k). I am proposing that instead we amend and restate the existing MP Plan as a 401(k) as of a specific date prior to year end. I stated that the ER is obligated to make a 10% contribution based upon compensationup until the effective date of the amendment. I also stated that as we are changing from a pension plan to a profit sharing plan there has to be 100% vesting and any "protected beenfits" must be preserved. My associate says it is not necessary to have 100% vesting. Also, if the MP funds are placed in "rollover" accounts in the new plan subject to the annuity rules and the new plan only allows a lump sum, does new money in other accounts escape the annuity rules?
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