Definiti
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Small NY Actuarial TPA Firm
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Carpenter Morse Group
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Southern Pension Services
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Advanced Plan Designs, LLC
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Plan Compliance Analyst (administrator) RPA
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Pension Rights Center
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Southern Pension Services
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Howard Simon & Associates
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Retirement Plan Relationship Manager Prosperity Advisors, LLC
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Quantech Pensions LLC
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Question 29: I have an employer (company A) that is acquiring 100% of the stock of company B. Company A has an existing 401(k) plan. It is his intent not to cover company B under the company A 401(k) Plan, but rather to start a separate plan for company B. Is this permissable and, if so, is it logical? |
Answer: I'm glad you asked this question because it is a good illustration of one of the most commonly held misconceptions about controlled groups. |
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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