Jump to content

Acquisition of another corporation


Recommended Posts

Guest Donkey Kong
Posted

Corporation A acquires B on 1/1/2001. Assume that B does not have a qualified plan. With B comes employees who have all been employed full-time more than 5 years. My question is how is the nondiscrimination testing (401(k) and 401(a)(4)) conducted?

If B does not adopt the existing plan of A, are the employees treated as zeroes for the nondiscrimination testing? Does the intent of 410(B)(6)© where a plan is deemed to pass coverage during the transition period apply to nondiscrimination?

Anyone?

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use