We have a 401(k) plan that is a multiple-employer plan. Two unrelated employers adopted the plan. Participants may direct investment into a fund consisting of employer securities. There are also other options in the investment menu.

We have Employer A and Employer B.

Is Employer A stock considered Qualifying Employer Securities with respect to employees of Employer B (and vice versa)?

If it makes any difference, Employers A and B were previously in a controlled group but due to ownership changes are no longer members of the controlled group.

Any thoughts?

I don't think that they are qualifying employer securities for purposes of the prohibited transaction rules, but would be treated as employer securities for purposes of the NUA rules.