Company A, B and C are participating employers in the XYZ plan the companies are a controlled group. Company C was sold to an unrelated buyer and is no longer part of the controlled group. Employees will continue at effectively the same job as they had before with this unrelated buyer (hence I think same desk rules apply?).
The gameplan is for former employees of C to have their 401k balances rolled to an existing plan of the unrelated buyer. I know I need to look at vesting issues.
If an employee does not want his balance moved to the new new company's plan, can he leave it with XYZ? Hence effectively giving the participants of C two choices for investment - either stay w/ the old or roll to the new. I'm just not sure in a spin off situation if the employees have the option. Thanks in advance for any help.