Spinoff from a Controlled Group

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Due to an ownership change in late 2002 a company is no longer a member of a controlled group. I believe that the rules are that this company can still be considered part of the controlled group for 2002 and 2003. If this is correct who actually gets to decide if they are included?

If I am incorrect is this plan considered a multiple employer plan?

[Mike Preston]

The cite you are referring to is 410(b)(6)©. It states that you get a free pass on 410(b) in certain circumstances. There is no corresponding provision under 401(a)(4). It most certainly does not say that the company in question can consider itself as a continuing part of the controlled group.

At the point in time that the ownership changed, if the company maintains its participation in a plan with other companies that it is not related to, the plan is a multiple-employer plan.