Santo Gold Posted October 14 Posted October 14 I should know this, but...... John owns 13% of company A; 0% of company B Joe owns 13% of company A; 0% of company B ABC company owns 74% of company A; 100% of company B Does a controlled group exist between Company A and B. More specifically, can the 401k plans for A and B operate independently of each other? Thank you
Lou S. Posted October 14 Posted October 14 Assuming John and Joe don't have ownership in ABC that might change this, it does not appear to be a controlled group between A and B under §414(b). The ABC company does not own at least 80% of Company A for a parent-subsidiary group to exist. Though it would for 415 limits, since the at least 80 is replaced by more than 50/ So if A & B have separate plans you still have 415 aggregation but no other aggregation. ABC would be a parent-sub of B, but not A. Paul I, CuseFan and Jakyasar 3
Jakyasar Posted October 15 Posted October 15 Don't forget to check affiliated service group possibility.
rocknrolls2 Posted October 15 Posted October 15 You have not explained who owns which percentages of ABC Company. That would be needed to make a determination. Peter Gulia 1
Santo Gold Posted October 23 Author Posted October 23 The ownership of ABC is by non-related individuals, no connection to John and Joe
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