Sale of Controlled Group Member (Posted May 8, 2005) Technical Tip 144: The following question and answer were from the IRS Q&A Session at the 2003 ASPPA Annual Conference: Can an employer selling a subsidiary that will no longer be part of the seller’s controlled group treat the transaction as a spin-off to the new plan without providing distributions to the participants affected? Response: Yes. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.