Controlled by the IRS – What you need to know about controlled groups

Description

Abstract: Do you know how a “controlled group” affects your qualified plan? To deter attempts to use multiple businesses to evade IRS requirements, such as discriminating in favor of highly compensated employees, ERISA requires plan sponsors to identify all participating employers. Plans must account for all employees in a controlled group to pass certain discrimination and participation tests. This article defines the different types of controlled groups and summarizes their impact.