401(k) plan for controlled group

[cathyw]

A group of controlled companies with 7 separate plans decides to merge the plans for 2017. Three of the companies maintain plans that currently offer matching contributions, which they would want to continue going forward but would not be extended to other members of the controlled group participating in the merged plan.

If each of the 3 companies could pass 410(b) separately, am I correct that: (a) there is no BRF problem, and (b) the ACP test would be performed separately for each company?

If one or more of the 3 companies could not pass 410(b) separately, but could pass if all 3 are aggregated, am I correct that: (a) there is a BRF issue that would be tested for current availability, and (b) the ACP test would be performed for the 3 companies on an aggregated basis?

Thanks.