Loss of controlled group status/timing of spin-off for prototype plan?

[Dawn Hafner]

A controlled group has an ownership change so that it is no longer a controlled group. The transition rules for 410(B) should apply as this is a disposition.

How is the plan affected if this is a prototype document? Is there a transition period to complete the plan spin off and establishment of a separate plan, or is the plan automatically a multiple employer plan on the date it ceased to be a controlled group?

Any cites are appreciated.

[IRC401]

Are prototype documents suitable for multiple employer plans?

There may be changes that take effect immediately that have nothing to do with 410(B), such as the need to do separate ADP tests.

You probably should decide what you want do do with the plan and get it amended or divided ASAP.