Retirement Plan Relationship Manager ERISA Services, Inc.
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Compass Retirement Consulting Group, Inc.
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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
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Retirement Plan Legal Specialist Pentegra
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United 401(k) Plans, Inc.
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Retirement, LLC
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Nova 401(k) Associates
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Central Pension Fund of the IUOE
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Carpenter Morse Group
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Central Pension Fund of the IUOE
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Trucker Huss, A Professional Corporation
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Bates & Company
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Prime Pensions, Inc.
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Nicholas Pension Consultants
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Question 8: A parent and a wholly-owned subsidiary have separate 401(k) plans. If an employee transfers from the parent to the sub (assume a new job, with no similar tasks) will the employee be considered terminated from the parent plan? Assume the plans do not address any kind of transfer provisions. |
Answer: I assume your question relates to whether this is a distributable event as a separation from service under IRC 401(k)(2)(B)(i)(I). No, it is not. |
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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