Controlled Group Question

[bzorc]

Controlled groups give me a headache; anyone have an opinion on this (BTW, I think it is a controlled group)?

Individual A owns 100% of X LLC which has no employees. X owns 50% of Company B which has employees. The other 50% of Company B is owned by another individual.

Can Individual A make contributions to a 401k which is under X LLC without any obligation to employees of Company B?
 

 

[CuseFan]

so basically A owns 100% of X and 50% of B - no control group if the other 50% owner of B is unrelated to A (i.e., no attribution issues). yes, X can then have a plan for A independent of anything B does assuming not affiliated service group either. A might have a combined 415 limit if B also has a plan and A is a participant - off top of my head I can't remember if that happens at 50% or more than 50% ownership.

[bzorc]

Thanks, no attribution issues, got to check on the ASG issue. No plan at B, A wants to avoid contributions for B employees.