Intra controlled group transfer of account

[Guest Lawrenceg]

Controlled Group of Companies (2) each with an identical plan. Record keeping is done separately for each plan. Participant moves from Company A to Company B within controlled group and wants to transfer account from Company A Plan to Company B Plan.

For the transferred account, would the sources of EE, Match, PS and Rollover with their respective balances remain the same after transfer or would they be consolidated into a rollover account after transfer.

The difference would is significant as rollover accounts allow inservice withdrawals of rollover amounts at any time.

If the sources remained the same before and after transfer then withdrawal options would be limited to hardship, or loan or inservice at age 591/2.

[JanetM]

Since this person has not had distributable event, you can't change the amounts to rollover. If you allow tranfer to the other plan the sources should stay intact.

[QDROphile]

You cannot have a rollover without a distribution event. A rollover is a disposition of a distribution. A move from one entity to another within a controlled group is not a termination of employment.

[david rigby]

Is the sponsor/controlled group paying for 2 audits?

Any economy of scale available with recordkeeper? trustee?

Why not merge the plans?

[Guest Lawrenceg]

Is the sponsor/controlled group paying for 2 audits?

Any economy of scale available with recordkeeper? trustee?

Why not merge the plans?

[Guest Lawrenceg]

Is the sponsor/controlled group paying for 2 audits?

Any economy of scale available with recordkeeper? trustee?

Why not merge the plans?

The owners want to keep them separate as they also duplicate all other operational and admin functions. All just in case they want to sell the other company.