Plan Merger - Top-Paid Election

[rocknrolls2]

Company X is publicly traded and maintains Plan A, a 401(k) plan. Company Y is not public traded and maintains Plan B, a 401(k) plan. Company Y is merged into Company X in January, 2015. Assume that both plans have calendar plan years and that Plan B is merged into Plan A effective December 1, 2015. Plan B uses the look-back rule for purposes of the ADP test and applies the top-paid group election in determining HCEs. For testing Plan B for ADP compliance purposes, would the employees of Company X be taken into account in applying the top-paid group rule since Company Y was merged into Company X effective in January 2015? Could Company X apply the transition rule in delaying the application of Plan B's top-paid group rule in determining highly compensated employees? I would be most interested in your observations on these questions.