Guest Kimberly Hlavacek Posted May 23, 2001 Posted May 23, 2001 We have a client that owns several auto dealerships. Recently, they just bought another dealership. This dealership that they bought had there own 401(k) plan. I am not sure what has happened with that 401(k)plan. The only thing that has changed is ownership. The employees will still be working for the dealership under the new ownership doing the same job. My question is when can these employees participate in the employers plan? Would they be immediately eligible to particiate under the same desk rule. Our clients eligiblity is a 3 month wait with semi-annual entry. Any thoughts would be appreciated.
rcline46 Posted May 23, 2001 Posted May 23, 2001 Buy stock or assets? What happened to existing plan a very critical item! Could have two plans going and would then merge plans, ees could be w/o a plan and have to resatisfy eligibility, agreement may have amended document for immediate eligibility or granted prior service. You need much more information to properly handle this. Mergers and Acquisitions are very tricky.
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