richard Posted May 8, 1999 Share Posted May 8, 1999 Person X owns 100% of Companies A and B; hence both companies are in the same controlled group. Both companies have employees, and both are calendar year companies. Effective June 1, 1999 (for example), X sells his entire interest of Company B to an unrelated person Y. When are both companies no longer in the same controlled group? Can Company A set up a pension plan effective June 1, 1999 (say for a 7 month initial plan year) and ignore employees of Company B? Or, must Company A wait until January 1, 2000 to set up a pension plan? (In other words, are A and B in the same controlled group for the entire 1999 year?) Or, must Company A wait until 2001 (or later)because ownership (for determining controlled group status) includes ownership interests in the last 5 years? Would the answers to the above be any different if the original companies were in the same brother-sister controlled group, and the ownership change resulted in them no longer being in the same brother-sister controlled group? Never dull! Link to comment Share on other sites More sharing options...
Guest FredReilly Posted May 24, 1999 Share Posted May 24, 1999 This is an interesting question, why don't you post this on the Who's the Employer? Q & A column? Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now