Control Group of 501(c)(3) organizations?

[jkharvey]

I have 4 501©(3) organizations that want to adopt 401(k) plan. How do I determine if they are a control group or if they need to adopt as multiple employer?

[Guest earthy]

In non-stock corporations, you will have to look at the composition of the boards of these respective entities and see if the 80% rule under Code Sections 1563(a) and 414© apply.

If 80% or more of the trustees or the board have a controlling interest in these non-stock corporations, then the controlled group rules apply.

See PLR's 9442031 and 9629033 for information.

earthy in Houston.

[Guest earthy]

If these organization's have 501©(3) status/letters, why in the world are they adoption 401(k) Plans?

Seems like they would go with 403(B) Plans and simplify their administration. No ADP Test, No Top-heavy, no exclusion allowance post 2001, etc..

Just a thought.

earthy