controlled group determination

[Chippy]

One of my clients restructured their company as of 1/1/2012 and divived it into four different companies. There is an administrative company, which has all the administrative employees that does work for all the companies. Company A does insurance investments, Company B does realty invesmtents and Company C does personal investments.

I don't think this is a controlled group, but one of the companies ownes 85% of another, so i'm not sure about that.

COuld just Company B and D be a controlled group?

here is the ownership:

Company A COmpany B Company C Company D

Richard 39.50

David 5.56% 15% 8.5%

Morey 22.22% 2.5%

William 22.22% 70% 33.5%

Richard 5.56% 15% 8.5%

Paul 22.22% 2.5%

mark 22.22%

Gary 10%

Company B 85%

I'm treating them as all unrelated companies and testing them separately for adp/acp, coverage and top heavy. Just would like confirmation that I'm on the right track.

If they are unrelated, and the plan would elect to go with a safe harbor match, would all of the plans have to contribute the SHMAC or do they have a choice? Currentey the plan has a match that is 50% up to 6%. No nonelective contribution.

[KJohnson]

B and D woudl appear to be in a parent subsidiary group. I think you need to look at the affililated service group rules as well and do an A-Org, B-Org, and management function group analysis.

[Calavera]

I agree that B and D are in controlled group. Who owns other 10% of C?

[Chippy]

thank you, Company B owns the other 10% of Company C.