Parent Subidiary issue

[52626]

the plan document and form shows the plan as a single employer. The Plan Sponsor is ABC, LLC

However, all the employees are in DEF, LLC which is owned 100% by ABC,LLC. Based on my research this is a parent-subsidiary relationship.

Doesn't the plan sponsor need to have a participation agreement with DEF, LLC?

If yes, and no agreement was signed, isn't there a document issue, causing the client to file under VCP?

the plan document states, If the employer is a member of a related employer group ( includes all members of a controlled group) Employees of each related group may participate under the plan provided the related employer executes a Participating Employer Agreement. If a related employer does not execute a Participating Employer Agreement, employees of such related employer are not eligible to participate in the plan

Guess I found my answer......

Need to file under VCP to correct?? Do you agree

[K2retire]

Check the base plan document. Some of them specify that all members of the plan sponsor's controlled group are automatically included.