Takeover of Old Plans/Rollovers

For client companies that wish to merge an old plan into the PEO Multiple Employer Plan, contact the Slavic Merger Department to begin a due diligence review.

Due diligence begins after plan setup and initial deductions. The merger process begins after the plan has been setup. For the takeover of assets and due diligence a fee of $350 + $3 per participant will be charged.

Steps

Submit the following:

  • Plan document, plus any amendments
  • Adoption Agreement
  • Determination letter
  • Last year's testing (ADP/ACP Discrimination Test and Top-Heavy Report)
  • Last (2) 5500's filed
  • Account balances summary
  • Summary Plan Description

When assets are liquidated during a transfer to another plan or other investments


  Those assets will typically be out of the market for several weeks or even longer until a complete accounting is received. After receiving an accurate accounting and all enrollment forms, the money usually is invested within four days.


  During the transition period, the plan assets do not earn interest and Slavic will not be responsible for missed market gains. These transfers are done on a best efforts basis.


 Slavic will ask that the old custodian hold the liquidated assets until an accounting can be provided.Some of the larger institutions can take up to four weeks to compile that accounting after liquidation.


 The client should NOT tell their current custodian to liquidate and send the money to Slavic without first receiving an instruction letter from the merger department of Slavic


If the plan is determined to be mergeable,
the following documents need to be generated:

  • Cover Letter
  • Sample letter of instruction/liquidation to prior administrator/custodian
  • Merger Agreement
  • Notice to participants
  • Tax Qualified Status Letter

Rollovers

 If you are with a new employer and have a 401(k) balance in a plan with an unrelated employer, you may be able to transfer that balance to the Multiple Employer Plan by submitting a Rollover Questionnaire for approval. If your former employer plan happens to be a PEO single employer plan, you can't merge or rollover your balance into the multiple employer plan. In this case, you should roll directly to an IRA


 The Rollover Request Form requires your administrator's signature to verify that your former plan is qualified with a determination letter.