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Showing results for tags 'multiple employer'.
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I have 2 companies that have a multiple employer plan. My question has to do with the compensation for the owner. I have an owner who owns 100% of Company A and 50% of Company B. This owner receives W2 compensation from both companies. I am wondering how I actually test the plan? Do I have this owner in both companies' separate testings and give them an allocation in both? (They want to do the max) Or am i allowed to aggregate the compensation and only have the owner in one company's testing? I am leaning toward the first way as I feel they do need to be tested under each employer, but I cannot find a definitive answer anywhere. I do know that the 415 limit is based on the compensation the owner receives from both employers.
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- multiple employer
- compensation
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The MEWA definition in ERISA 3(40) (29 USC 1002(40)) provides that a MEWA is an employee welfare benefit plan established/maintained for the purpose of offering/providing any welfare plan benefit to the employees of two or more employers (including one or more self-employed individuals)... My question is how to define "self-employed individuals" for MEWA purposes. 401© defines the term, but I'm unsure whether that can properly be incorporated into the MEWA definition. Thank you in advance for your assistance.
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- MEWA
- self-employed individual
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