Testing In Plan Merger

[Guest SSCARO]

A 401k Plan on a calendar year is merged with the plan of the acquiring entity in October of 2000. Is it permissible for the plan of the acquiring entity to test the plans together for the entire year or must the merged plan be tested on its own through October?

[MWeddell]

The plans may be permissively aggregated for the plan year from the point in time that the plans covered employees in the same controlled group, assuming they are also aggregated for 410(B), 401(a)(4), etc.

Aggregating them starting from the beginning of the plan year if the corporate acquisition occurred after that date strikes me as too aggressive a position, but as with many m&a questions the lack of regulatory guidance may allow a broad range of reasonable interpretations.