dottie

Thank you!

Client owns 100% of a construction business (company A) which currently has a 401(k) Plan. The client just purchased a 50% interest in another construction business (company B). The companies work together in both referring work and the completion of jobs but are not exclusive and provide services separately. The owner of company A would like to have company B join his plan. I can't see this falling under an ASG or a controlled group. Is there any issue with company B becoming an adopting employer of company A's Plan? Thanks for your input!

I am not an expert in the controlled group world and would appreciate any input on whether this scenario falls under a brother /sister controlled group Company A - sole proprietor - Dave 100% Company B - S-Corp - Dave an employee - Dad owns 100% Company C - Dave owns 15%, Dad owns 50% and various family members own 35% None of the companies are related or have any business relations with each other. As the family attribution rules apply, I am not sure if Company A & B would be considered a controlled group. Thanks