Assume same desk rule applies; does an individual transferred to the n

[Guest wwest]

401(k) plan has ees who transfer to another company that has no plan. It's determined that the same desk rule applies and no distributions are permitted. If ees are not fully vested upon transfer, but they are not terminated from plan, will they continue to accrue vesting service? Does it depend on how plan it written?

[KJohnson]

If the new employer is in the same controlled group then the contiguous service regs would apply and you would have to credit. Did you check for a partial termination in which case you would have to vest anyway? Other than those two items, I don't know of anything else that would require additional vesting.

[Guest wwest]

It was determined that not enough ees left for partial termination to occur. The new er is not in the same controlled group. Does that mean no further vesting?