Controlled Group Clarification

[amcorson]

Are the assumptions below correct? I have seen conflicting information regarding the Safe Harbor.

2 companies, 1 owner owns 90% of both = controlled group

Looking to set up safe harbor (basic match) for company A and no plan for company B

Coverage - need to include all employees of A & B for coverage testing

ADP/ACP - only plan is Safe Harbor, all employees of company B are not eligible and thus excluded

Any clarification would be appreciated. Thanks.

[Ron Snyder]

You appear to state the rules correctly as they apply to your facts.