Transferring between members of contol group and distributions

[JanetM]

Have searched and can't find anything similar on the boards.

Scenario is this - company A has 401(k) plan and company B has 401(k) plan. A and B are control group.

Employees job is to be eliminated at company A in next couple of months. Employee takes job with company B.

I need site that says employee can not roll funds from company A plan to company B plan.

Can anyone help me out here?

[E as in ERISA]

I think that its a combination of the controlled group rules that say that A and B are considered one employer (414(b)/©) and the 401(k) distribution rules that restrict distributions to an active employee. If the employee can't take a distribution, then he can't roll it either. The employer could transfer it if the plans provide. But the employee can't control the transaction.