Controlled Group - Participant balance transfer

[sla]

Two companies of one owner, two separate plans, plan A and plan B. An employee transfers employment from plan A to plan B (under the same employer), can the employee transfer their plan A assets to plan B and continue paying their plan A outstanding loan balance to plan B after the transfer?

[MWeddell]

Only if both plan documents so provide and plan B preserves any protected benefits. From what I've seen, if assets are transferred after employees are transferred, typically it is done for all transferred employees, not just those who elect the transfer.