Multiple ER Plan

[PFranckowiak]

Have a large controlled group of ERs in a 401(k) plan - 0ver 100 participants

Have another controlled group of ER's that does not fit the Controlled Group rules to join the first group as a related ER. But has some common ownership.

What are the benefits of keeping the plans separate or setting up a Multiple ER plan.

I know that Coverage, Top Heavy and ADP/ACP testing must be done separately for the Related vs the unrelated.

I know it will be complicated to separate out as some Employees will work for both entities.

Benefits might be one Audit, One 5500

Anything else I should be looking at?

Pat

[cpc0506]

Under the new MEP provisions, each plan would need its own Form 5500.

[QDROphile]

You need to assess the securities law issues. The MEP might not be eligible for the standard exemption from registration and from the investment Compant Act.