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ADP/ACP testing


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Guest KRS401k
Posted

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.

Posted

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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