Company A was acquired by Company B in an asset sale. The Purchase Agreement provided that service with Company A would be counted as vesting service under Company B's 401(k) plan. Company B was later acquired by Company C in a stock sale. Company B's 401(k) plan was then merged into Company C's 401(k) plan.
X was originally employed by Company A. He became employed by Company B as a result of the asset sale. He terminated employment with Company B before Company B was acquired by Company C. X was hired by Company C sometime after Company C's acquisition of Company B. X's total vesting service under Company B's 401(k) plan (counting his service with both Company A and Company B) was longer than his break in service from the time he left Company B until he was hired by Company C.
If X received a total distribution of his account under Company B's 401(k) plan when he terminated employment with Company B, does his service with Company A count for purposes of vesting under Company C's 401(k) plan?
