Site Manager / Senior Administrator Nicholas Pension Consultants
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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Hessel & Associates, LLC
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Aimpoint Pension
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Nicholas Pension Consultants
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Sentinel Benefits & Financial Group
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MGKS
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NFL Player Benefit Office
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United Benefit Pensions Inc.
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Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
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Retirement, LLC
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Retirement, LLC
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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Question 62: What rules apply when a partnership that has been a participating employer in a 401(k) plan of a group of trades or businesses under common control chooses to withdraw from the plan (no spinoff or other transaction involved, just an amendment to cease being a participating employer)? Are the rules any different from the rules that would apply if the partnership had initially chosen not to be a participating employer? |
Answer: Without a doubt, the most important thing to remember about controlled groups under Internal Revenue Code section 414(b), groups of trades or businesses under common control under section 414(c), and affiliated service groups under section 414(m) is that the employees of all group members are treated as employed by a single employer for purposes of most Code provisions relating to qualified plans. |
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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