I have a prospect with two car dealerships. They have multiple employees who work at both locations, including two HCEs who work at both locations but only take a salary at one. This gives me two HCEs in the one company with zero pay and zero deferrals. One of the HCEs is the owner so I can’t really mark him as terminated in the plan where he does not have comp. What would you do in this situation? Do I leave them in the test?
My questions for them are:
1. Are there two plans or one
2. Is this a controlled and/or affiliated service group, i.e., an employer with multiple entities ( to which all entities singed a participating employer agreement) and as a result all such entities participate in this single plan.
Anything else I should know? I assume I can test combined or separately, as long as 410(b) passes separately
