RayJJohnsonJr Posted October 5, 2021 Posted October 5, 2021 Co. B bought Co. A in an Asset Purchase. I checked and it is permissible for Co. B to assume the existing 401k of Co. A. Effective 6/1/20, the Plan Sponsor was changed from Co. A to Co. B. Many employees who worked for Co. A immediately became Co. B employees. I'm thinking: Co. A. files a 5500 for the period 1/1/20 until the sale date which simultaneously made A's employees B's employees. That 5500 would end with $0 assets. And it would be marked "final." Co. B would file a 5500 for the period beginning on the purchase date thru 12/31/2020. Am I on the right track? Or the wrong track? Thanks
Bill Presson Posted October 5, 2021 Posted October 5, 2021 Wrong track. Just file a single 5500 for 2020. Put the new sponsor info in section 2 on the first page. Put the old sponsor info in section 4 on the first page. (I'm assuming this is an SF, I didn't look at the regular 5500). William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
RayJJohnsonJr Posted October 5, 2021 Author Posted October 5, 2021 OK. also, the Plan Name was changed, what should we put in Section 1?
Bill Presson Posted October 5, 2021 Posted October 5, 2021 Whatever the new name is. The critical pieces the IRS/DOL need are the plan number and the EIN William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
RayJJohnsonJr Posted October 5, 2021 Author Posted October 5, 2021 Thank you so much, Bill, for putting me on the right track. Bill Presson 1
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