I have 2 companies A and B owned by 2 separate individuals X and Y respectively.
Company A own by X only have 1 employee, Y
Company B own by Y has 4 employees and one of them is X
Company A derives much of its income from Company B
Company A wants to set up a 401K with defined benefit plan
Company B wants to set up a 401k Safe Harbor
Can they have separate plans or are they part of controlled group by management function?
Thanks in advance for any suggestions.