Retirement Plan Legal Specialist Pentegra
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Bates & Company
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Central Pension Fund of the IUOE
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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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Central Pension Fund of the IUOE
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Trucker Huss, A Professional Corporation
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Carpenter Morse Group
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Retirement, LLC
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Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
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Compass Retirement Consulting Group, Inc.
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Prime Pensions, Inc.
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Retirement Plan Relationship Manager ERISA Services, Inc.
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Nova 401(k) Associates
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Nicholas Pension Consultants
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United 401(k) Plans, Inc.
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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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