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Showing results for tags 'acquisition of 401K plan'.
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Hello Everybody, I am a controller of a company who just acquired another larger company who has a Safe Harbor 401K plan. We, the acquirer, do not have a plan. We are adding the parent company employees into the acquired 401K plan. The plan is administered by a payroll company. My concerns are: 1. The plan name is still named the subsidiary name 401k plan. The employees of the parent company are not employees of the acquired company. Shouldn't the plan name be changed to the parent company's name and it's EIN#? 2. Control groups and testing. 3. Board resolutions? Plan amendments needed? Unfortunately, our management sees this as an afterthought and everything is left for me to figure out. I do not trust the payroll company 401K department to do this correctly. He just wants me to write a letter to change the plan name. Don't we need to amend the plan to add the parent company employees?? Thank you for your comments and knowledge on this!
