Filing Forms 5300 for Merged Plans (Posted May 22, 2003) Technical Tip 97: The following question and answer were from the IRS Employee Plans Corner website: When two or more plans are merged, how many Form 5300 applications are necessary? Response: Only one Form 5300 application needs to be submitted for the "surviving plan." Comment by RLR&C ERISA Attorneys: This situation most frequently arises when a money purchase pension plan is merged into a profit sharing plan. Prior to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the deduction limit for contributions to profit sharing plans had been 15% of the compensation paid to participants, while the money purchase pension plan limit was 25% of compensation. In order to maintain the greatest flexibility, while maximizing their deductions, many companies maintained both money purchase pension plans and profit sharing plans. Once EGTRRA increased the Code § 404(a)(3) deduction limit for profit sharing plans to 25% of compensation, the incentive to maintain the money purchase pension plan was significantly reduced and many companies merged their money purchase pension plans into their profit sharing plans. As indicated above, the IRS has indicated that only one Form 5300 needs to be submitted for the surviving plan. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.