austin3515 Posted March 30, 2012 Posted March 30, 2012 Big Co closes down small co it's wholly owned subsidiary on 4/30/12. The Plan (what's left of it) will be merged into Big Co's plan. Do I need to pro rate the comp limits? Austin Powers, CPA, QPA, ERPA
Jim Chad Posted March 30, 2012 Posted March 30, 2012 I don't think you would pro rate. What does everyone else think?
austin3515 Posted March 30, 2012 Author Posted March 30, 2012 the EOB actually says to prorate. They say some argue you dont have to but it is labeled the "Agressive position." Apparently there was a Q&A in 2011 about this and the IRS reply was to prorate. Austin Powers, CPA, QPA, ERPA
Jim Chad Posted March 30, 2012 Posted March 30, 2012 It is still the same employer, so this seems really odd to me.
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