Employee leaving Co. for another Co. in Controlled Group QSLOB

We have an employee leaving Co. A for Co. B.  Both companies are in a controlled group, but Co. B and a few other Companies are covered by a Qualified Separate Line of Business.  The employee wants to roll over his monies to Co. B's own plan.  Is a rollover appropriate in this scenario where the QSLOB treats these companies as separate employers?  Or are the companies still considered a controlled group for this purpose and a rollover is inappropriate?  Or am I off on both possibilities?

I'm not sure about the answer to your question, but do the plan documents of the respective plans allow a transfer of the participant's benefits between plans?  Our volume submitter document allows this kind of transfer.  If allowed, that might be a better solution than what you are asking about. 

You're right Kevin.  His termination with Co. A and new employment with Co. B was not considered a severance from employment as it was within the controlled group.  414 treated the move as a transfer between companies.  I had to look into the QSLOB rules, and found they only take employers out of a controlled group for testing purposes.  The transfer of 1.411(d)-4 was appropriate as both Companies had 401k's and the transfer was in connection with a change in employment status.  I just wanted a quick answer instead of navigating the ERISA outline books.