Various questions in Affiliated Service Group situation; interlocking law firms

[R. Butler]

We have the ABC profit sharing plan. ABC plan adopted 12/24/01, effective 01/01/01

ABC is a law firm. ABC just informed us, that unbeknowst to us, they formed another law firm with Lawyer D. The DABC firm was formed 01/09/01. D & ABC each own 50% of DABC, no other relation between D & ABC

I just got the good news a few minutes ago so I'm just digging into it. It seems to me that this an affiliated service group situation. (I hate affiliated service group rules).

A couple of preliminary questions:

1. The ABC plan requires a year of service. I should be O.K. for 2001 because DABC wasn't formed until 2001, those employees wouldn't meet the YOS requirement. Does that seem to correct?

2. I don't know much about D yet. If D has employees I assume that this is 1 affiliated service group & I need to consider D's employees also. Seem correct?

3. If D has affiliated service group/controlled group issues apart from DABC. I don't see that I need to consider those issues because they wouldn't be related to ABC? Seem correct.

Thanks in advance for any guidance.

[R. Butler]

I am satisfied I know the answers to #1 & #3, but I'm still looking for confirmation on #2. (Really I want someone to tell me I'm wrong.)

Thanks in advance for any guidance.

[Mike Preston]

Check this out:

http://benefitslink.com/perl/qa.cgi?db=qa_..._employer&id=31