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Controlled Group


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Posted

Company A is a foreign company and owns Company B & C.

Company B is domestic.

Company C is foreign but owns domestic Company D.

Company B has a 401k plan for only Company B employees.

Is Company D a member of the controlled group for 401k plan's testing?

Posted

Yes. The employees of company A & C could probably be statutorily excluded as "non-resident aliens" but the subsidiary of Company C (Company D) I assume has US resident employees and as such need to be counted for coverage purposes. For clarification purposes, I am assuming a parent subsidiary relationship exists between A, B, & C.

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