Spin off and Merger

[PFranckowiak]

Controlled Group 1 401k Plan Sponsored by Company A includes Company B as a particpating Employer. Company A was Sold and Plan will be terminating. Company B ownership changed so that it is now a part of a different Controlled Group 2, which has its own plan.

They want Company B to become a Part of Contolled Group 2 401k plan ASAP.

So I am looking at this as a spinoff and transfer into the other plan. Participating Employer Agreements, Board Resolutions checking new plan for protected benefits etc. They want to try to not have any payroll withholding missed. Not sure if that is possible.

Assume both plans definition of Compensation is Total Compensation and that this Spin off and merger takes place in December. How do you handle ADP testing and what compensation is used? I do not have any details yet, but want to know what questions I should be asking besides dates etc. I know the end desire is that they want Company B moved to the Controlled Group 2 401k plan before the end of the year. I know that the test may fail and will have refunds.

Thanks, just want my list of quesions before I go into a meeting with the client.

Thanks