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Non-discrimination test for merger occurring mid-year


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Guest benefitsanalyst
Posted

Merged acquired plan on 7/1 and need to know for ADP test do we have to use compensation for full year and 401k contributuion only from time of merge?? - This really hurts our test...

Posted

There is no specific answer to your question because there is no IRS guidance. See BNA Tax mgt Compensation Planning Journal 6/4/99 P 159-167 for article on 401(k) issues in mergers.

mjb

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