Guest KRS401k Posted July 22, 2008 Posted July 22, 2008 We have 5 businesses each with their own separate 401(k) plans. There are 4 owners who have more than a 5% share in some of the businesses. Owners include: A is an owner in 3 of the 5. B is an owner in all of the businesses. C child of A, owner in 2 of the 5. D is an owner in one of the businesses. Businesses include: 1 is owned by A and B. A and C are participants in this plan. 2 is owned by B and C. 3 is owned by B (and others with less than 5% share) 4 is owned by A, B, and C. B and D are participants in this plan. 5 is owned by A, B, and D. How would you handle the ADP/ACP testing in this situation? Would we have to aggregate all plans into one? Sorry if I left something out, I'm new to this.
Kimberly S Posted July 22, 2008 Posted July 22, 2008 Before your question can be answered it needs to be determined which of the companies are in a Controlled Group or Affiliated Service Group as defined by the Internal Revenue Code. You have not provided enough information to determine either of those questions.
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