ALBailey

We have 3 physician practice groups and 1 management company that comprise an Affiliated Service Group (ASG) through 9/30/07. They participate in the same plan, Plan A. We break the ASG effective 10/1/07 and create new retirement plans for the 3 practices groups, Plans B, C, and D. How are the minimum coverage test (410(b)) and ADP/ACP tests for Plan A run for 2007? Who is counted and what compensation is considered?

Is there any prohibition against an employer entering into an employment agreement that will make a partner whole for any forfeitures from a qualified plan? The employer would reimburse the partner with assets outside the plan and such reimbursement would be taxable to the partner. Does this violate any qualified plan rule?