JH1

A new client has been operating plans from many different companies as a controlled group from 2011 to the present. There was not enough common ownership amongst the companies to qualify as a controlled group. The plan assets are being held in a master trust. I've been searching for the required correction and cannot seemed to find answers. 1. What is the correction for improperly classifying the plans as a controlled group? 2. Because these plans are not a controlled group, it seems they should not have been held in a master trust. Is there an IRS or DOL correction for this? Can the trust document simply be amended to a group trust instead of a master trust? Any help is greatly appreciated.

Client A owns two companies. The first company employs all non-family members. The second company employs his wife and three minor children, twins that are 7 years old, and a 2 year old. The client wants to start a 401(k) plan and have the two companies be part of a controlled group. Question - are the minor children truly eligible for the 401(k) plan? What would that do to year end testing if they were?