How long is the grace period of an acquired company to comply with 410

[Guest Joe Vasko]

If a company is acquired and becomes part of a controlled group, each of whom has an existing retirement plan, what is the grace period given to comply with 410(B) and 416?

I have heard that it is one year from the date of acquisition. If this is correct, were in the Code can this can be found?

Thanks,

Joe

[M R Bernardin]

I'm not sure about 416, but the grace period for 410(B) is the end of the plan year following the plan year in which the acquisition occurred, provided each plan satisfied 410(B) prior to the acquisition. You can find this in the regulations under 410(B).