controll group/affiliated service group

[Guest ars]

I have tried reading the code defintions and still am confused. Can someone provide me with a general definition and explanation of what it means to be a member of a controll group or affilitated service group?

Thanks

[Guest Phil L]

The controlled group and affiliated service group rules are among the most complicated topics involving qualified retirement plans, especially when you consider the complexities involving stock attributions rules.

Technically, there is a difference between controlled groups and businesses under common control, but I'll generically refer to both of them as controlled group members. It is extremely important to determine whether the plan sponsor is a member of a controlled group or whether it is associated with an affiliated service group. All the coverage, discrimination testing, and service counting rules must be applied on a controlled group basis. Service counting rules includes service for eligibility and vesting.

It would be impossible to know if a company's plan is qualified without knowing whether the company is a member of a controlled group or affiliated service group for a particular year.

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[John A]

I'd suggest you read through the "Who's the Employer" Q&A column on BenefitsLink -- http://www.benefitslink.com/qa_columns/who_is_employer/index.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click)://http://www.benefitslink.com/qa_colu...x.shtml (click). You can also post a question there, which might be answered online by the author of the Q&A column.

[This message has been edited by Dave Baker (edited 10-12-1999).]

[Guest RS Vatalaro]

I have a great article written by Derrin Watson on calculating controlled groups, it's full of examples. Hope Derrin doesn't mind this advertisement. If you e mail your fax number to me I'd be happy to fax it to you.

rvatalaro@earthlink.net