Transition period for 401(k) Plan

[Guest Scrappy]

If Company A sold one it its wholly owned subsidiaries (Company B) during the plan year, is there a transition period (for qualified plan purposes) where Company B employees could still be covered under Company A's 401(k) plan?

Could Company A and Company B treated as a controlled group for the entire plan year?

[alanm]

I think so under sec. 410b -(6)©(i)