European 401k Plan and U.S. 401k Plan

[Zoey]

A European company has a 401(k) Plan. They are opening another company/branch in the U.S. Since this is a controlled group situation, does the U.S. company have to adopt the European's plan document, or do the rules apply differently, allowing them to have their own plan document?

Thanks!

[TLGeer]

Controlled group status has nothing to do with the number of plan documents. If a single entity can have multiple plans, as it can, then so can members of a single controlled group.

Just as an aside, the facts make me wonder whether there could be a QSLOB here. Not immediately important, but might be relevant if there are dscrimination issues down the road.

Tom Geer

[Zoey]

I didn't think of that...Of course one company can have multiple documents.

I too, am worried about discrimination issues.

Thanks Tom!