Controlled Group Testing

[jala]

Company A owns 100% of Company B and 63% of Company C. Company A and Company B each have their own cafeteria plan document and each file Form 5500.

For testing purposes, must the plans be combined or may they test separately.

[Guest b2kates]

See IRC Section 125(g)(4).

(4) Certain controlled groups, etc.

All employees who are treated as employed by a single employer

under subsection (b), ©, or (m) of section 414 shall be treated as

employed by a single employer for purposes of this section.

[Ron Snyder]

Don't forget IRC Section 414(t):

"(t) Application of controlled group rules to certain employee benefits

(1) In general

All employees who are treated as employed by a single employer under subsection (b), ©, or (m) shall be treated as employed by a single employer for purposes of an applicable section. The provisions of subsection (o) shall apply with respect to the requirements of an applicable section.

(2) Applicable section

For purposes of this subsection, the term "applicable section" means section 79, 106, 117(d), 120, 125, 127, 129, 132, 137, 274(j), 505, or 4980B."