Controlled Group - Are separate plans an option?

I have a question regarding 2 corporations owned by the same person.  Company A is 100% owned by Owner A and sponsors a 401k/PS plan.  Owner A is acquiring a new company B with different employees in the same industry.  Company B does not currently sponsor a pension plan since it is a new company. Is Company B permitted to establish a separate 401k/PS for the benefit of its employees, or must these employees participate in Company A's plan?  Am I correct to assume NDT will include employees from both company's?  Company A has 60 employees and Company B will have 40.  I'm wondering if there is a plan design available to get around the large plan filing requirement.

Company B can have it's own plan. They are a controlled group so you need test everything together and you have one 401(a)(17) limit and one 415 limit if you have any employees who wide up working for both company A & B. I think you may also have one 401(k) test, but I could be wrong on that.

So yes but some extra testing.

Provided each plan can satisfy coverage without the need to aggregate then you can test separately for nondiscrimination.

22 hours ago, CuseFan said:

with the need to aggregate

Sorry, without the need to aggregate.

10 minutes ago, CuseFan said:

Sorry, without the need to aggregate.

You can edit your original post. Click the three dots in the upper right corner.

Thanks Bill, I never knew that - I learned something new today so you can teach an old dog new tricks! Of course no guarantees I'll remember that months from now when it happens again.