control group

[Guest beach]

We have a controlled group of 3 companies.

Fiscal and 401k plan year end is Oct 31

Bought a new company with an existing Profit sharing plan – fiscal and plan year end is Dec 31

The new company will be an adopting employer of the parent company. Can we keep at Dec 31 plan year or need to change to Oct 31? Thank you

[Tom Poje]

since under the regs 1.410(b)-7(d)(5) Two or more plans may not be aggregated and treated as a single plan unless they have the same plan year it is generally recommended all plans have the same plan year. in other words, if that plan failed coverage on its own, you couldn't aggregate with any other plan to pass. but there is no requirement that you change the plan year.