Expert: Allen - 3/10/2011

Question
I had a profit sharing pension plan since 1994 under a simple partnership. This year, I opened a new LLC under a sole proprietorship, dissolving the previous partnership. What do I need to do to "transfer" my pension to the new LLC? Do I just change the EIN in this years IRS 5500 form? Or is it more involved than that. Thank you.

Answer
There may be ways for the new LLC to adopt the partnership's plan. However, since the ownership of the business is different (you and others owned the partnership while only you own the LLC) the best approach is for the LLC to establish a new plan and then rollover your interest in the old plan to the new plan. This would entail completing various forms for both the old plan and the new plan. You need to contact whomever you work with on the plans for the appropriate paperwork.