What kind of testing/reporting is required for a controlled group?

[Guest Sara H]

We have a client, we'll call Company A, who has a standardized 401(k) plan. A division of this company, we'll call Company B, has broken off into their own company, however, they still work in the same building and ownership has not changed (so they are a controlled group). Company B has signed Company A's 401(k) plan document as a "Participating Employer".

Am I correct in saying that I should run the ND testing including both companies together rather than separately AND also file only one 5500 since this is a controlled group using the same plan? Thanks!

[stephen]

Yes.