Affiliated Service Group/Controlled Group

[Randy Watson]

Would a wholly owned subsidiary of an entity in an affiliated service group be considered to be part of that affiliated service group even if it performs no services whatsoever for the group? For example, assume Company A and Company B are joint owners in Company C and the three entities consisitute an affiliated service group. Company D is a wholly owned subsidiary of B, but performs no services in connection with the group. Company D is not part of the affiliated service group. If an employee leaves Company C to work for Company D would they be eligible for a distribution from Company C's 401(k)? They are no longer working for an entity in the affiliated service group, but they are working for an entity that is part of a controlled group that has a member in the affilated service group. HELP!