solo 401(k)

[Guest Pat Metallic]

A doctor uses only leased employees. Can he utilize a solo 401(k)?

[Guest rhp]

The first question is: who is the common law employer of the leased employees. See Rev Proc 2002-21. Even if the leasing company is the common law employer, the leased employees must be covered once they meet eligibility using the 414n rules and the plan's eligibility provisions. The challenge comes if any of them elect to make salary deferrals--how to actually make the withholdings and deposit the deferrals.

[actuarysmith]

I believe the doc is still on the hook, unless the leasing organization provides a minimum 10% of pay money purchase allocation (fat chance in most leasing orgs.........)

[Medusa]

If the leasing organization does sponsor such a plan, we still have the requirement that not more than 20% of the work force may be leased in order to consider it a safe harbor plan, correct?

[Brian Gallagher]

...plus the leased employees must be covered by a money purchase plan of at least 10% of camp and immediate eligibility.

[Blinky the 3-eyed Fish]

10% of camp? Does this mean part of the tent and maybe a burnt log?

[actuarysmith]

Hey, don't forget to include the S'Mores!

[Guest Mike Kimball]

Must be close to October15th???