Lori H Posted July 22, 2014 Share Posted July 22, 2014 a 3 member controlled group operates under a 401(k) plan that provides uniform benefits and provisions to all 3. One member brought up the suggestion of having their own plan due to the fact they had a Standard Industrial Classification (SIC) code. I have never heard this. Link to comment Share on other sites More sharing options...
Lou S. Posted July 22, 2014 Share Posted July 22, 2014 The company could have it's own plan provided it passes all IRS discrimination testes based on all employees of the controlled group. If it is large enough I might meet the QSLOB rules. I've never heard anything about having their own SIC code having any real meaning with respect to Qualified Plans. Link to comment Share on other sites More sharing options...
QDROphile Posted July 22, 2014 Share Posted July 22, 2014 SIC is relevant to a QSLOB analysis. Lou S. and MWeddell 2 Link to comment Share on other sites More sharing options...
Lori H Posted July 23, 2014 Author Share Posted July 23, 2014 Would the benefits, rights and features of the SIC plan have to mirror that of the other members of the controlled group? If it satisfied QSLOB(more than 50 employees, 5310-A, etc) could it have for example a different matching formula? Link to comment Share on other sites More sharing options...
Lori H Posted August 29, 2014 Author Share Posted August 29, 2014 ???? Link to comment Share on other sites More sharing options...
austin3515 Posted September 1, 2014 Share Posted September 1, 2014 If they QSLOB's, yes they can do whatever they want. Mind you, must meet the nondiscriminatory classification test, but then it wouldn't be a QSLOB if you couldn't meet that. Even if not a QSLOB each plan can still do whatever it wants provided they meet all of the coverage requirements. So if the SH plan disproportionately benefits HCE's it probably would not work. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
Lori H Posted September 1, 2014 Author Share Posted September 1, 2014 Thanks for the response. It's a 3 member controlled group. Right now its only employee deferrals, but one member, which consists of more HCE's, is thinking of doing something on its own. Link to comment Share on other sites More sharing options...
austin3515 Posted September 2, 2014 Share Posted September 2, 2014 btw, one of the qslob requirements I believe is that each LOB must have 50 participants. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
Lori H Posted September 2, 2014 Author Share Posted September 2, 2014 they currently have just under 200 participants, would an audit still be required if one member had their own plan? Link to comment Share on other sites More sharing options...
austin3515 Posted September 2, 2014 Share Posted September 2, 2014 There is no plan aggregation for the audit requirement. 3 plans with 60 participants each = no audit requirement for any of the plans. You still need to make sure each LOB has 50, btw. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
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