Plan merger actually...

In a plan merger, are the balances of prior terminees also transferred into the new 401k plan?  These terminees can take their money out of the original plan at any time. but if they do not and their balance is over $5,000, they have to be rolled into the new plan, is that correct?

Thank you

I'd say yes, presuming the merger documents address their and all the old plan's participants' assets.

(Transferred, not rolled over, semantically speaking.)

If there is simply a merger, yes. The “original plan” is subsumed into the merged plan. As Bri suggests, the transaction can be designed differently with different outcomes.

Appreciate the replies.