 PEO Spinoff, Safe Harbor Plan |
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 Dec 20 2007, 01:59 PM
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Registered User Group: Sitewide Moderator Posts: 1,097 Joined: 6-December 01 From: Mobile, AL Member No.: 8,539  |
A company is going to spinoff from a PEO and start their own plan. Would this be considered eligible to do safe harbor for 2008 since it is a startup or is it looked at as a continuing plan and would have had to have the notice out by 12-2007?
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Dec 20 2007, 04:08 PM
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#2
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Registered User Group: Registered Posts: 84 Joined: 12-January 99 Member No.: 1,799 |
QUOTE (Archimage @ Dec 20 2007, 01:59 PM)  A company is going to spinoff from a PEO and start their own plan. Would this be considered eligible to do safe harbor for 2008 since it is a startup or is it looked at as a continuing plan and would have had to have the notice out by 12-2007? We have always presumed that it was the plan of the Client Organization and therefore the 'spinoff' is not a new plan. In the gray world of PEO plans we treat the Client Organization as having theur own plan, but that they are using the PEO's document via a joinder agreement as aconvenience. In that light the restatement that uses a new document can't add the safe harbor for 2008 at this time. Good luck. |
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