vintagelemon

thanks, that's what i thought too? the only reason im nervous is it's fidelity who is the one insisting they cant work with us because of the controlled group issues, and one would think they know what they're talking about when it comes to 401ks

Hi all--I'm getting conflicting advice on what should hopefully be a straightforward issue. I work for a US-based small business, and we have a wholly-owned French subsidiary. US business is the parent co & pays the US employees, while the French sub pays our French employees. Meanwhile, we also have a few remote individuals in countries like Canada & Portugal, and we use an EOR (Rippling) to pay them. I am looking to set up a 401K for our US employees and speaking to potential plan providers. One plan provider said our structure should present no issues when it comes to controlled groups since any associated rules would only be looking at US employees; however, another provider has been adamant in saying that all non-US employees (French & otherwise) will be included in Department of Labor non-discrimination testing due to controlled group rules. If the latter is true, this obviously prevents an issue for us since (1) we cannot actually offer a 401K to non-US employees, and (2) wages are very different across country lines. Can someone please advise?