Guest Mbrockway Posted October 25, 2006 Share Posted October 25, 2006 Do affiliated service group rules apply to VEBA's, as it would pertain to 410(b) coverage rules under a DC plan? I'm a DC plan consultant. I've got doctor who owns his own medical practice. He is also 1 of 30 owners for a emergeny physicians clinic, in which he provides services to. This is an affiliated service group. The clinic maintains a 401(k) Safe Harbor plan. The doctor opted out of that plan. He'd like to establish a VEBA but I'm not sure if he can because of the affiliated service group rules. Another one I have is a doctor w/4 partners within his corp. One of the new partners wants to set up his own S Corp or PA and enter into a VEBA. His CPA says that if he sets up his own corp he cannot participate in their 401(k) - which is contritictory to other cases I've worked on. Any words of wisdom is appreciated. Sites are even better! Link to comment Share on other sites More sharing options...
Guest Mbrockway Posted October 25, 2006 Share Posted October 25, 2006 Additional info - The VEBA's would be established for the doctor only. Link to comment Share on other sites More sharing options...
vebaguru Posted October 31, 2006 Share Posted October 31, 2006 Affiliated service group rules do not directly apply to VEBA trusts or associations. Howeve, the ASG rules DO apply to the benefits provided by the VEBA. IRC Section 414(t). Link to comment Share on other sites More sharing options...
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