Young Curmudgeon Posted March 23, 2012 Posted March 23, 2012 What if I want to be pbgc covered so I can skirt the combined plan limit? Is there code that prohibits this? It seems too good to be true and if allowed, everybody would do it. Thoughts?
SoCalActuary Posted March 23, 2012 Posted March 23, 2012 Do you hire people and conduct business activity that does not meet the definition of professional services? PBGC coverage has an external standard, one based on actual business activity.
Andy the Actuary Posted March 24, 2012 Posted March 24, 2012 See ERISA 4021. In particular, plans covering only substantial owners are excluded under 4021(b)(9). The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Effen Posted March 25, 2012 Posted March 25, 2012 PBGC coverage isn't optional (except maybe for church plans). You either are, or you are not, covered. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
emmetttrudy Posted March 28, 2012 Posted March 28, 2012 You cannot elect to be covered. If your business falls under professional service organization and you are 25 employees or less, you are excluded. Check their definition closely, perhaps you don't qualify as a PSO.
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