Calandar/Fiscal Yr. Control Group

[sdix401k]

I have run across two companies whose 401(k) plans are part of a control group. One is on a calendar year and the other on a fiscal year ending 3/31. Does anyone know how such a control group should be tested? If the census data is simply combined over the differing periods of time what deadlines regarding testing (such as corrections occurring within 2.5 months of plan year-end) would be applicable?

Thank you in advance for any help you may be able to provide.

[Tom Poje]

I believe the IRS goes beyond being a big brother in this case. more like a father (or the Godfather)

in other words,

too bad

so sad

your dad.

see 1.410(b)-7(d)(5) 2 or more plans may NOT be aggregated and treated as a single plan under this paragraph [permissively aggreagted] unless they have the same plan year. thus for coverage you get 2 tests and people includable and not benefiting.

since you can only nondiscrim test the same way you coverage tested (no permissive aggregation), you will have to run separate ADP tests. but of course for the ADP test you don't include the 'other' memeber of the controlled in the adp test, since they are not 'eligible' for that plan.

if you have to rely on the avg ben % test to pass coverage, you include all contributions - see 1.410(b)-5(d)(3) how to handle.