merger: transition rule

[k man]

the code is pretty clear that the transition rule applies only to coverage when two companies merge but choose to run the plans separately. the rule does not apply to adp/acp. this may be a silly question but then do you have to aggregate the two plans for adp/acp test but not for coverage?

[jquazza]

Plans need to be aggregated for nondiscrimination if they are aggregated for coverage, hence, if you don't need to aggregate for coverage, you don't need to aggregate for ADP/ACP.

[austin3515]

You never HAVE to aggregate two separate plans for nondiscrimination testing. You may if you want to. So if each plan passes coverage without considering the affects of the acquisition (I forget the exact free-pass requirements), then each 401(k) plan would run the adp/acp test separately.