HCE determination in a Controlled Group becoming a multiple emplohyer

[dmb]

Currently have two plans (4101k and 401a) each adopted by the two employers of the controlled group. Currently non-discrimination testing is performed on both plans together. The plans will be amended to change from a controlled group situation to a multiple employer situation and tested separately. If a participant works for both employers, earns less than the HCE compensation threshold from each, but combined earns above the HCE compensation threshold, is that participant considered an HCE based on compensation? Thanks.

[My 2 cents]

Don't really understand how you could, by amending the plans, change the corporate structure from a controlled group to a multiple employer situation. Do you mean that the actual corporate structure has changed from a controlled group to a multiple employer situation? If so, is a plan amendment necessary? I realize that this is not an answer to your actual question.