roundlou Posted May 2, 2018 Share Posted May 2, 2018 Have Company A 100% owned by John. Have Company B owned 100% by Bill. In May 2018 Company A buys Company B and John is 100% owner and Bill is 0% owner Each company had their own 401(k) plan in 2017, company B's plan is merged into company A's plan. Is Bill: 1) a key employee in company A's plan based upon prior year ownership? 2) a former key employee in company A's plan? 3) or just a regular empoyee in company A's plan? thanks Link to comment Share on other sites More sharing options...
Luke Bailey Posted May 3, 2018 Share Posted May 3, 2018 And B is still in existence and is an adopting employer of the merged plan? Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
roundlou Posted May 23, 2018 Author Share Posted May 23, 2018 sorry for the delay, no company B is now closed and has become part of company A. Link to comment Share on other sites More sharing options...
Luke Bailey Posted May 23, 2018 Share Posted May 23, 2018 This may be key: Did company B merge into A (i.e., the transaction documents say they are merged), or were only B's assets transferred to A, and A was terminated? In a merger the surviving corporation takes on the obligations of the target, in an asset acquisition, it doesn't. So I'm thinking if a merger, your 1) would apply, if an asset sale, 3) would apply. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
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