Maximum amount available for loan--what is a related plan

[jkharvey]

An employer (our client) has purchased another business (asset purchase). Several of the employees from the purchased business are going to become employees of our client. Would thie plan of the purchased company be considered a "related" plan for purposes of determining any amounts avaialbe for loans of these new employees?

[Lou S.]

Will the prior company be retaining/maintaining the plan or will the plan transfer to the new sponsor and part of the asset acquisition?

If the former, separate limits, if the later it is a related plan of the new sponsor so it would affect the limits.

[jkharvey]

Prior company is keeping the plan. I think they are actually terminating it. Thanks.