Ownership of adopting employers for plan purposes

[Rai401k]

ok this may be retirement plans 101 but for some reason we can't seem to figure out the answer.

Two examples:

1. Company A sponsors a plan, they buy Company B. Company B doesn't have an existing plan and adopts Company A's plan. Let's assume the Company A is owned by one owner (100%) but company b is owned by 5 owners - owner of company A included. For plan purposes when we are determining ownership do we look at the other 4 owners of company B to determine for example if they have to take an RMD. In other words do we look at what the ownership is of Company B even though Company A sponsors the plan.

2. Same as above but let's say Company A and Company B are affiliated employers. Company A sponsors the plan and Company B adopts company A's plan. No like ownership but they are an affiliated service group. Do we look at the owners of company A and B for plan purposes or only A since they are the sponsoring employers.

[Lou S.]

For RMD determination (or HCE, Key-ee determination) you look at the highest percent ownership an employee has in any entity that has adopted the plan to determine if the participant is a more than 5% owner.

[BG5150]

If company A bought company B, then who are the other 4 people?

[Rai401k]

If company A bought company B, then who are the other 4 people?

I'm sorry i should have explained it better. Company A didn't buy 100% of company B only partial. The other 4 are the existing owners that now have a smaller share of the company. i don't have the exact % at this moment but let's say Company A owns 50% of company B and the 4 existing owners now only own 12.5%. I think this causes another problem for me. This may not be considered a controlled group and i could not have them adopt one plan document correct? It would be considered a Multiple Employer Plan? Maybe should do a separate post for that .

[BG5150]

Is there an affiliated service group relationship at all?

[Rai401k]

Is there an affiliated service group relationship at all?

I have to find out for sure, but assuming there is that would allow us to treat as one employer correct? We had another plan that was a dentist group, no like ownership but i believe they were affiliated employers so we were told it was ok to have them adopt one plan.