TPApril Posted October 5, 2021 Share Posted October 5, 2021 Basic structure - One corporation with limited staff owns two entities, each with their own EIN. Neither entity has ownership in the other. The two entities want to set up a common PS plan, but they want one of the two entities to sponsor rather than the common owner. Trying to figure out if this is a Single Employer or Multiple Employer plan? Link to comment Share on other sites More sharing options...
Lou S. Posted October 5, 2021 Share Posted October 5, 2021 Do I understand that you have 3 corporations A, B and C. Parent A owns 100% of sub B and sub C? They want to have B be the lead sponsor and C be an adopting employer (or the other way around)? If that's the fact pattern I don't see a problem doing a single employer controlled group plan. If I misunderstood the fact pattern, my apologies. If A also has employees you'll need to decide if they are adopting too or not and whether your document pulls in all members of a controlled group. If A has employees and you are excluding them, you'll want to make sure you still pass coverage. Luke Bailey 1 Link to comment Share on other sites More sharing options...
TPApril Posted October 6, 2021 Author Share Posted October 6, 2021 you got it, and thanks Lou for that reminder about the company A employees. Link to comment Share on other sites More sharing options...
BrownTrout Posted October 17, 2021 Share Posted October 17, 2021 I have a similar situation except no parent company. Company A is 100% owned by an individual and has 3 employees (including the owner). Company B is 50% owned by the individual and 50% owned by the individual's spouse (clearly a controlled group). Company B has 25 employees (including both of the owners) Company A has had a 401(k)/PS plan in place for many years; Company B adopted Company A's plan effective 1/1/2021. Next year, will Company A file one Form 5500 and include consolidated info for Company A and Company B. Or do Companies A and B have to file separate Form 5500s? Link to comment Share on other sites More sharing options...
Mike Preston Posted October 19, 2021 Share Posted October 19, 2021 Combined. Link to comment Share on other sites More sharing options...
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