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cpc0506

Asset sale within a current plan

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Hello, Employer A owned 100% of 3 other companies.  Employer A sponsors a 401(k) plan in which the 3 companies signed Participating Employer Agreements.  I found out today that Employer A sold the 3 companies a few years through an Asset sale. 

  1. Can I amend plan now to indicate that a controlled group no longer exists?
  2. Should cessation agreements have been generated for each Particpating Employer?  Or does the type of sale negate the PEA?

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An asset sale doesn't necessarily mean the other companies cease to exist, or even that they have no remaining employees. 

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