justatester Posted March 8, 2013 Posted March 8, 2013 We have plan the is part of a large controlled group. They acquired another company through an asset acquistion in 9/2012. They use the top 20% rule to determine HCEs. For 2012 HCE determination, do we need to consider this group? They acquired group did have a 401(k) plan and it is not merging into our plan at this point. It will remain separate.
12AX7 Posted March 9, 2013 Posted March 9, 2013 Assuming that it's a calendar year plan and your determination date is 12/31/2011, then the group acquired 9/12 were not employees and therefore not used in the determination of HCE for 2012 since the plans were not merged. For 2013, it would appear they would be considered for determination.
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