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Showing results for tags 'peo'.
Found 6 results
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Employee Leasing company wants to sponsor a 401(k) for their inhouse employees only. Can they exclude employees leased to other organizations? Are there limitations or testing requirements to consider?
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We have a dental office client who has a qualified retirement plan (401(k)) and has signed up for and is now under a PEO arrangement. The PEO sponsors its own retirement plan and the employees will now be participating in that Plan. Have been asked options for the participants if any resulting from the termination of their Dental Plan. I am concerned about the replacement plan rules associated with going to a PEO and what options are available to the participants (if any). Under 401(k)(10) - would the PEO be considered a "replacement plan"?
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I have a client who terminated their existing plan and transferred to a PEO. A final 5500 Form was completed with a short plan year from 1/1/2018 to 6/11/2018 (I'm assuming this is the date all assets were transferred to the PEO plan with the plan number as 001). The client now wants to move out of the PEO and start a new plan sponsored by his company (same EIN as the prior plan) under plan number 002. Since the last distribution date of the terminated plan of the Plan Sponsor is less than 12 months, is there a successor plan issue, if the effective date of the new plan is 1/1/2019? FYI - This is not a safe harbor plan. If this is a successor plan issue, is the resolution to have a short plan from 7/1/2019 to 12/31/2019? Thank you for any input. -
The client is part of a PEO which handles all the HR functions and paid through PEO. Employees can make 401(k) contributions to PEO calendar year 401(k) Plan. The client sponsors a separate PSP for employer contributions. The PSP is an off-calendar year plan that uses calendar year comp for contributions and testing. The PSP contribution is cross-tested. I believe I need to include the 401(k) contributions for non-discrimination purposes and the 401(k) account balances for Top Heavy Testing. Is that correct?
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We administer our payroll and most benefits (health care, 401k) under a PEO plan. We also have a 457(b) [and soon a 457(f)] Plan that the company administers because the PEO does not offer this plan. However, the employee contributions are reported to the PEO for reporting on the year end W2 reports and filing. My question -- what EIN number should be used for the 457(b) and 457(f) plans - the company's or the PEO's? We set up the 457(b) Plan under the company's EIN because it was set up before we switched to the PEO. But as I am now setting up a 457(f) the question has arisen. I think it should be the company's EIN because until risk of loss is removed the assets belong to the company - but my common sense may not be what rules the day. Advice is welcome.
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Can anyone expand upon my thoughts regarding PEO-sponsored 401(k) plans. From my perspective, they seem to serve a purpose for a smaller company (under 20 EEs or so), but become less attractive as an employer grows larger. Any direct experience with terminating such a relationship and the particulars of that process would be appreciated.
