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successor plan and adp testing


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New 401k plan established for Company A with initial short plan yr (short limit yr) because Co. A terminated leasing agreement mid yr with XYZ and established their own plan. Moast but not all of Co. A employees were leased from Co.XYZ. XYZ had a 401k plan that Co. A "co-sponsored" according to a letter they sent Co. A. upon termination of the leasing agreement.

Co A elected to have plan assets of their employees transferred into their new plan making it a successor plan- correct?

How do we do the ADP/ACP test for the first short year?

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