Money Purchse Plan Merging into new Profit Sharing Plan

We have a money purchase plan that the client wants to merge into an new profit sharing plan effective 1/1/2026. Since the psp is new, does it need to have the auto enrollment provisions? Or because of it being a merged plan, it won't need those auto enrollment provisions?

Does anyone have any examples of a merger agreement that I can use?

Is there anything else that is needed? The participant notices will be going out.

Was it a pre-ERISA money purchase plan such that it already allowed for deferrals?  

Also, you can just restate a MPPP as a PS or 401(k) plan. Why create a new plan and merge?

Whether a plan is subject to mandatory auto enrollment is based on the date the CODA is established. Presumably the CODA was established when the profit sharing plan was established, so it would be after December 2022 and therefore not exempt.

Also, consider terminating the MP and allowing (not forcing) R/O into the new plan. That way you deal with the QJSA notices and elections now at one time rather than having to deal with them on pieces of accounts at varying times in the future. Also, the larger those MP balances get in the future, the more apt someone is to see an annuity as attractive and elect - at least IMHO. Given a very easy direct R/O option to new plan, I would expect a majority to do so.

I didn't think I could restate the MPP as a PSP. There will be no deferrals allowed. Just a straight PSP. If I can really just restate the MPP as a PSP then that would be the easiest.

Thank you!

2 hours ago, Coleboy1 said:

no deferrals allowed

Yes, just restate as PSP, but if no 401(k) deferrals why ask about auto enrollment?

LOL...because I wasn't thinking when I wrote that! LOL!