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I just met with a prospect yesterday and they bought a company that has a plan with Prevailing Wage Contributions under the Service Contract Act. The parent company sponsors a 401k safe harbor plan. Two vendors before me told them they had to sponsor a single plan.

Is anyone aware that as long as the plan passes coverage testing, the SCA plan can remain separate from the Parent plan? That would not make any sense, but in this business, does anything make sense.

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