Jump to content

Recommended Posts

Posted

Company A buys Company B in a stock sale.  Company A's plan has no provisions for employer contributions.  Company B's plan has a discretionary match subject to a vesting schedule.  Company B's plan is to be merged into Company A's plan.  Under Company B, a participant is 60% vested under a 6-year graded schedule.  When the plan's are merged Company A's recordkeeper will need to set up a source for Company B's match, and the participant's match will need to be set up at 60%.  

Question.  Would I be correct that as the participant continues to earn vesting service the vesting for the account must increase accordingly.  Further, would Company A's plan need to be amended to accommodate the protected vesting for the merged Company B accounts?  

Thank you.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use