Multiple Employer Plan with Stock Ownership Change

[msmith]

I have a Mulitple Employer 401(k) Plan - calendar year that uses the Prior Year Testing Method. For the Plan Year beginning 01/01/2013, there was a change in the stock ownership; and now the the non-Conrolled Group member is part of the Controlled Group.

For Plan Year 2013, I have calculated the weighted average for the ADP and ACP testing, for the two sub-groups. However, I am wondering if this would have the same "transition period" as the 401(b) coverage testing.

Any comments would be appreciated.

[QDROphile]

You said any comments. Who is advising about securities law compliance? And if you think that is an impertinent or puzzling question, you really need to make sure that no one will ever claim that is within your duties and your service contracts with MEP 401(k) plans should disclaim any responsibility for advising about securities law compliance.

[msmith]

I guess I should have been more specific and stated any constructive comments. I have no idea where you are going with your comment QDROphile.

This is not a PEO/MEP type situation. Just one Plan with 30 Companies (all within the Controlled Group) and one other Company that had some common ownership in 2012 (not enough to be in the Controlled Group) - but a change to ownership in 2013 that caused this "other" Company to become part of the Controlled Group.

[BG5150]

The 2013 ADP test (in this case) is run with the 2012 NHCE numbers. The "new" company wasn't in the plan in 2012, so those people aren't in the test. Their 2013 figures will be in the 2014 test.