Pros/Cons of being named employer on 401k

[Safeharbor29]

I have a situation where there are two components of a company. Lets call them component A and component B. Component A is the main company and component B is an operating arm of the company. The 401k plan is under component B's name. What are the pros/cons of having the 401k plan in one or the other?

[Lou S.]

Is this one employer with two divisions or two employers?

If they are two employers are they members of a controlled group of affiliated service group or are they unrelated?

[Safeharbor29]

can we look at from each angle? One employer with two divisions and two employers that are members of a controlled group.

[jpod]

If it is only one employer then there is no question here to be addressed.

If there are two employers that are a controlled group, the Plan Sponsor - which is what I think you mean - is the employer that actually controls the plan in several respects as described in ERISA. If that is yet to be determined, then you determine that first before designating the plan sponsor.