Affiliated Service Group question.

[Guest JPotosky]

I have an affiliated service group question.

Facts: Government contractor (Company A) is currently working on a contract where 50 employees are on Company A's payroll and qualified plan. On August 1, employees are transfered to Company C, the ensuing contractor on the project. This Company is 40% owned by Company A and Company B. Company B is 40% owned by Company A as well. Can Company A still keep the Company C employees on it's qualified plan, or must they role them into a new plan. Because of their relationships, Company A provides accounting and billing support to Company C.