Chippy Posted June 10, 2008 Posted June 10, 2008 I have a company that acquired a new company during March 2007. I don't know if it was stock or asset sale. The plan is counting prior service for eligibility purposes. The acquired company has one employee earning over 100,000 in 2007. I don't have the 2006 compensations. In determining the HCE's for 2007, does the compensation from the acquired company count? If it does, can I test the acquired company separately? This person is deferring a high percentage and will make the adp/acp test fail if he is determined to be a HCE for 2007. The plan has 3 companies participating and is a controlled group.
J Simmons Posted June 11, 2008 Posted June 11, 2008 For purposes of your second question, take a look at IRC section 410(b)(6)© and regs John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now