Compensation and controlled group

I have a controlled group, 2 companies.    They have passed coverage separately  in prior years with sometimes combining for a better result in the ADP test/ACP test.    Company B wants to increase their match but also exclude bonuses from compensation.     Will this effect Company A for any reason?   

It might not.  The key here is to identify your potential areas of concern.  You have two distinct plans sponsored by two members of a single controlled group.  So, if one member provides a higher match,  there couldn't possibly be an issue if they were to pass 410(b) as standalone plans.  Should they need to be aggregated for any reason, then you'll have to show that B did not receive a discriminatory rate of match.  You would already have shown that when they passed 410(b) separately.  When combined, you'd need to show that 'while they are both benefiting for ACP', the Company Match provided by B is a nondiscriminatory rate pursuant to the Regulation.

Good Luck!