Controlled/ASG - departure mid year - compliance testing

Professional Services Group with shared ownership of company by the professionals.

Each professional has their own Inc/LLC and their own plan.

All plans mirror each other and are cross-tested together.

Some of the professional are exiting the Company at say 9/30, though their individual companies will continue.

The PS contribution requires last day worked and they will be making PS contributions as separated companies.  It is assumed then that their PS contributions will not be included at year end testing.

Somehow I know I'm not thinking of everything clearly. Two questions:

• I believe they are treated in the testing as terminated at 9/30, so 401(k) contributions made prior to 9/30 are included in testing.
• One of the Partners leaving is over 65, so is eligible for a PS contribution as a Retiree, but the contribution will be made long after 9/30. Not sure if this is included in the testing?

And chance they are parting on reasonably good terms and keeping the terms of the individual plans and coverage the same through the end of the year? Can you take advantage of 410(b)(6) transition rule and and continue to test them together through the end of the 2022 plan year?

They do not want to include them in the year end testing.

It seems like yet another gray area. This link might get you in the right direction or it might get you deeper in the weeds. That is IRS guidance seems to be less than crystal clear.

https://benefitslink.com/cgi-bin/qa.cgi?db=qa_who_is_employer&n=106