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Stock Acquisition and Successor Plan


Slem

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Company A is acquiring Company B via stock acquisition.  Both companies currently sponsor retirement plans.  Company A has a stand alone plan and Company B is part of a PEO.  Once the acquisition happens  Company B will retain their own EIN and act as a subsidiary of Company A.   The intent is for Company B to terminate participation in the PEO plan prior to acquisition.   Post acquisition Company B will become a participating employer on the Company A plan.

The question is does Company B employees have a distributable event or would participation in Company A plan be viewed as a successor plan? 

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