Qslob

[Guest Lex]

A foreign parent owns 2 companies located in the USA. They are therfore a controlled group. They meet the qualifications of QSLOBs. However, a 5310-A was never filed notifyng the IRS of the QSLOB designation. Both US-based companies sponsor 401k Plans. Each has operated as if they are a QSLOB (for purposes of coverage, non-discrim testing, etc.). Interestingly, when each of the companies filed for a deteremination letter for their individual plans, they marked the boxes stating it was a QSLOB and provided the Demo that that affect. Therefore, the Plans have determination letters based on them being QSLOBs.

Does the determination letter replace the need for a 5310-A? Does it protect the Plans, if on a non-QSLOB basis, they would ahve failed coverage/non-discrim testing?