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Posted

Company B is 100% owned by Company A and has an employee that left the employ of B and went to work for A. Is that a distributable event? Does it matter if Company A is a foreign based company? Obviously we are not talking about same-desk rule since it's a new job in a different country...But, does the controlled group situation impact this?

Guest greggi39
Posted

page 4-25 of "taxation of distributions from qualified plans" states that severnce of employment has occurred or not should be based on whether the ee is continued to be employed by the er, taking into account controlled group rules, and the er is maintaining the plan, rather than on the basis of the ee continues to work on the same job for the new er.

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