K2retire Posted March 12, 2015 Posted March 12, 2015 In 2013 Dad owned 100% of companies 1, 2, 3 and 4. Company 1 sponsored a 401(k) plan adopted by all the other companies. During 2014, 51% of the ownership of company 1 is shifted to adult Son with Dad keeping 49%. Son also owns 100% of company 5 that is not a part of the plan. Companies 2, 3 and 4 are clearly part of a controlled group. What about 1 and 5? My recollection is that there is only attribution from Dad to Son if Dad owns more than 50% of the company. What about from Son to Dad? Or do I have that backwards? And why is it always the client who gets you a census the second week of March who has these kinds of issues? (OK, I don't really need an answer to this last one.)
Mike Preston Posted March 12, 2015 Posted March 12, 2015 Two separate controlled groups. 410(b)(6)(C ) is your friend for 2014 and 2015.
K2retire Posted March 12, 2015 Author Posted March 12, 2015 That's what I thought -- but I'm not sure how I would test that since pieces of each are in the plan.
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