REAL ESTATE - RESPA

[Guest AlyssaC]

I have a current client that is a real estate firm - they are opening a title insurance company. Which under RESPA must be a completely separate entity - same ownership. Can they both participate in the same plan or do we need to set up a separate plan for the title company?

[ERISAnut]

Of coarse they can. They are a Controlled Group for qualified plan purposes since they have the same owner. This is irrespective of the fact that the operations are different.

[Guest Kevin1]

Co-usage us usually done via a "participation agreement". My PPD adoption agreement has one.

[ERISAnut]

Co-usage us usually done via a "participation agreement". My PPD adoption agreement has one.

This is true. You always want to determine how the plan is written with respect to related employers. Many plans currently require each related employer to actually adopt onto the plan as a co-sponsor. In the event you mistakenly adopt a plan that provides for coverage of all employees of the entire related group, this could 'blow up' in the invent there is a controlled group that the companies are not aware of.