Plans of Cntrolled Groups of Corporations

[Hoard1]

COntrolled Group of Corporations(Auto Dealerships) erroneously omitted a Corporation (Bank w 8 employees) from the Nationally Sponsored Plan. In fact the Plan could not accept the Bank because it was not an Auto Dealership.

Provided the plan passes 410(b)with the inclusion of the Bank employees are there any problems with their exclusion.

If the Bank decides to sponsor a Plan, is there any way to test it seperately or would I have to look to average benefits test to pass 410(B) because ratio test will probably fail?

Is ADP & ACP testing done on a Plan by Plan basis for COntrolled group or are they aggregated?

[Ervin Barham]

Any group of employees can be excluded from a non-standardized plan and that does not present a problem as long as you pass coverage under 410(B).

ADP/ACP testing is done on the basis of "eligible employees" for the plan, providing you pass coverage separately for each part and each plan.

You don't indicate how many total employees there are, so you could take a look at a separate plan, but it may prove difficult.

This is not my area, but you may want to go at this from a QSLOB (separate line of business). This takes some expertise to know and follow those rules.

Good luck.