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Multiple Employer Plan Liability


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Posted

If one of the plans in a multiple employer plan has a disqualifying event, does it make the whole multiple employer plan disqualified?

Thanks

Guest Mbrockway
Posted

Regarding Multiple Employer Plans - one CO can disqualify the entire plan - which would include all of the other CO's who adopted the plan.

Refer to 413© for guidance.

Posted

What is a CO??

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

I knew that I could count on you to clarify the post. Now I understand much better.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Guest Mbrockway
Posted
:) "CO" is Client Organization in the PEO world. A Client Organization is the Worksite Employer.
Guest Mbrockway
Posted

Ewh....what did I get myself into? Ha Ha!

Posted

I thought that CO probably meant Client Organization, but could not see where it came into play regarding the post as written. However, if I had read between the lines, as Mbrockway did, and given some leeway, then I would have seen that it makes sense that this post probably involved a PEO.

Corporate Orangutan = PEO MEP

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

I'm sorry, first for not replying faster, second for not being specific. Let me lay it out.

Company A is a payroll company and offers benefits and payroll services to other companies. Company B is a company that uses the services by company A. In doing so they have adopted company A's 401(k) plan. If company B becomes disqualified for any reason, will it disqualify company A's plan and everyone else that has adopted company A's plan?

I think this was answered by Mbrockway but I would like to make sure I'm on the same page.

Thank you,

Guest Mbrockway
Posted

Shaf - yes, I think we are all on the same page now. One adopting CO (client organization) has the potential to disqualify the entire plan.

Boy, these PEO's are making me crazy! :wacko:

Posted

I hear you there.

Thanks for the info.

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