403(b)/401(k) Coverage

[Guest dietpepsi]

Some fun questions....

There is a parent company that owns two not for profit entities and two for profit entities.

The parent company sponsors a 403(b) plan for the two not for profit enties and one 401(k) plan for the for profit entities. Both plans have deferrals, match and discretionary.

The parent company is a not for profit entity. The employees in the parent company are particpating in both the 403(b) and the 401(k). Don't ask me why or what benefit they think they are getting from it, I don't know.

Since the parent company employees are participating in both plans, I don't think the 401(k) plan can any longer exclude the employees in any of the not for profit entities from the ratio percentage test. Would you agree or do you think they can still exclude the employees in the two not for profit entities, just not the employees in the parent company?

I'll put my other questions in a separate post as not to overwhelm.

Thanks