Controlled Group and document

[cpc0506]

Hello. I have two clients that are members of a controlled group. Both companies are owned 100% by the same 4 people in the same percentages. Each plan is a straight 401k plan. No match, no Profit Sharing. All aspects of the plan are the same. The owners were paid in both companies but only participated in one plan (and they were the only employees and participants in that plan). I do believe this might be a problem.

Each client each had their own GUST document. And each filed their own Form 5500. Is that okay? Should they be combined into a single EGTRRA Volume Submitter document?

Please advise. Thanks.

[Mike Preston]

Hello. I have two new clients that are members of a controlled group. Both companies are owned 100% by the same 4 people in the same percentages. Each plan is a straight 401k plan. No match, no Profit Sharing. All aspects of the plan are the same. The owners were paid in both companies but only participated in one plan (and they were the only employees and participants in that plan). I do believe this might be a problem.

Each client each had their own GUST document. And each filed their own Form 5500. Is that okay? Should they be combined into a single EGTRRA Volume Submitter document?

Please advise. Thanks.

Doesn't sound like a problem to me. You test on the aggregated plans, of course, right?

[cpc0506]

Please advise. Thanks.

Doesn't sound like a problem to me. You test on the aggregated plans, of course, right?

We were originally told that all 'non-owner' employees were union employees. So we could permissively disaggregate union vs non-union. Now we find out that there are non-union employees who are not owners in both companies. And plans have never been tested together.

[Mike Preston]

Then you have some testing to do.

[austin3515]

So we could permissively disaggregate union vs non-union

You couldn't do it permissively,it would have to be mandatorily (if that's even a word)... OF course the outocme is the same (I'm being a little facetious) but the point is you are required to disaggragate (SP??) the usion / nonunion folks.

Also, because both plans cover a key employee you are required to aggregate both plans together for top-heavy testing, incluidng the union portion of the plan. So for top-heavy you mandatory AGGREGATION. Presumably, this is a good thing...