For purposes of employee benefit plans, a parent-subsidiary group of corporations or a group of trades or businesses under common control, as defined in Internal Revenue Code (Code) Sections 414(b) and 414(c) and related regulations (26 U.S.C. § 414). Controlled group membership is usually determined by 80% direct or indirect common ownership between or among the corporations or businesses involved. In calculating the 80% ownership threshold, different constructive ownership rules of the Code may apply, depending on the purpose for determining the controlled group.

For more information, see Practice Note, Controlled Group and Affiliated Service Group Rules.