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3-part organization with a 401(k) is no longer part of a controlled gr


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Posted

It has been determined that an 3 part organization with a 401(k)is no longer part of a contorl group or ASG. Must the 401(k) be split into 3 plans or can the plans still be under one non-standardized plan document? It will still need to be aggreagated for 415 testing.

Posted

Why would you want to keep the plan together if they are no longer part of the same control group? You will have much greater flexibility if you run them as two or three separate plans.

Posted

If the plans need to be split up then two of the plans would have only about 20 eligibles each and would cause more problems administrativly for a small company. Thus if possible they would like to keep the plans as one or else a 401(k) may no longer make sense.

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