Purchase of Foreign Company

[buckaroo]

We were recently contacted by one of our clients who told us that they just purchased a foreign company. (I do not think which country is important, but if it is let's say Mexico or Canada.) They wanted to allow the employees of the foreign company (all are citizens of the foreign country) to participate in the plan. I was told by one of my colleagues that this could be done, but I was asked how this would affect the testing of the plan. Specifically, they wanted to know about ADP/ACP, 410(b) coverage, and 401(a)(4) non-discrim.

My thought is that the employees would be considered NRAs. As NRAs, they could be specifically excluded from the coverage group. However, since they are permitted to participate, this fact is not relevent.

Now they are in the plan. My next thought is since they could be a statutory exclusion, they could be treated as Union employees. If this is correct, does this mean that they would be in their own ADP/ACP test? (Do they get an automatic pass on ACP?) Do they get any sort of automatic pass on coverage? Or because they are eligible for the plan, are they simply treated as any other non-union employees?

Any help would be greatly appreciated? Also where to learn more about this (EOB, answer books, etc...) would also be very helpful.