Audit Required? - Control Group - 2 separate 401(k)plan documents

[Guest Don J. Smith]

I have two sales companies that consitute a control group. Each company sells the same product but different brands than the other. Each company has its own Standardized Prototype Document that is a clone of the other. Both companies have calandar year plans, but the one company did not come into existance (Company "B") until 6/15/99, thus they will have a short plan year ending 12/31/99. I am filing 2 separate 5500's since they have two serarate plan documents. I am fairly sure an Audit is not necessary for 12/31/99 5500 filing since Company "A" only had 50 employees on 1/1/99 and Company "B" didnt exist. (Company "B" will have about 85 to 90 EE's on 1/1/00)

Please confirm!

Also, won't two 5500's need to be filed for plan year end 12/31/00 and since 2 separate plans. Since separate plan documents are being used does an Audit need to be done for the 12/31/00 plan year end? If so, would you attach the same Audit info to each 5500 being filed for each plan?

[Guest RBeck]

Are the plans set up so that employees of A are excluded from B's plan, and employees of B are excluded from A's plan? If the plans are identical, why are there 2 when the companies are aggregated and treated as a single employer for almost every other purpose under the qualified plan rules? I think you might have an audit situation here.