Controlled Group/testing question

[Dan]

Working with a controlled group has not been too difficult before now. I have a multi-state company that has made a number of acquisitions over the years. All of the divisions participate in the same plan. They have a very complicated ownership structure that leads to four controlled groups. We have always tested these groups as four separate plans.

It so happens that the smallest group will be top heavy as of 12/31/06. They asked if there is any way to avoid the top heavy minimum for this small group. Can I combine this small group with one of the larger groups for testing purposes? The research I have done talks about combining two plans, but I am uncertain if that applies to two divisions of the same plan.

I appreciate any insight.

[austin3515]

No can do, for the same reason that CocaCola and Pepsi can't do it for their plans...

[Blinky the 3-eyed Fish]

Dan, you state you have one plan. You state that it's a controlled group, so you don't have a mutiple employer situation. How is it that the whole plan is not top heavy and not just this one portion you cite?

[GBurns]

I am curious as to the "permutations" created by this "complicated ownership structure" that creates 4 separate controlled groups within this corporation, which seems to be more of either a holding company or a equity capital partner of some sort.

While anything is possible, I would love to learn more about the creativity behind this structure design. Is it possible to tell us more?

[Dan]

I didn't state the structure very well. They are separate employers of a holding company and sponsoring employers of the plan.