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Sentinel Benefits & Financial Group
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Senior Administrator / Site Manager Nicholas Pension Consultants
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Senior Actuarial Analyst/ Project Manager Van Iwaarden Associates
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NFL Player Benefit Office
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Senior Retirement Plan Administrator Enhanced Retirement Solutions
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Sentinel Benefits & Financial Group
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Nicholas Pension Consultants
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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United Benefit Pensions Inc.
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Retirement, LLC
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Retirement, LLC
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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Hessel & Associates, LLC
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Defined Benefit Pension Consultant The Ryding Company
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Question 274: A guy owns 100% of a construction company: "LargeCo." Then he forms another company (an "S" corporation for tax purposes) named "SmallCo," which leases equipmnent and real estate to LargeCo. He owns 79.9% of SmallCo; the other 20.1% is owned by an unrelated party. Now SmallCo installs a qualified plan that covers only SmallCo employees. Does the plan have to cover the employees of LargeCo? |
Answer: Are the two companies a controlled group for qualified plan purposes? No. 79.9% common ownership is not 80% common ownership. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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