doctor owner who is not independent contractor

[AKconsult]

Question: A doctor who is a partner in an anesthesiology practice has supposedly terminated and is now an independent contractor. We are being told he is paid on a 1099 and is no longer a W-2 employee. But he is still an owner of the practice. He wants to take a distribution from the plan. I'm not sure where to go with this. This doctor is also a trustee. As a TPA firm, how much should we really question this?

[WDIK]

As a TPA firm, how much should we really question this?

The level to which a TPA questions a client's actions is inversely proportional to the level of responsibility a TPA wants to take when the client's actions go awry.

[QDROphile]

A lawyers's answer: Not at all. But that answer comes from a premise that a TPA should not be answering any legal or interpretive questions and that premise is never respected.

Next question: What services did you contract for and what expectations did you create on the part of the plan administrator?

[mbozek]

Question: A doctor who is a partner in an anesthesiology practice has supposedly terminated and is now an independent contractor. We are being told he is paid on a 1099 and is no longer a W-2 employee. But he is still an owner of the practice. He wants to take a distribution from the plan. I'm not sure where to go with this. This doctor is also a trustee. As a TPA firm, how much should we really question this?

What does your TPA agreement provide as to how you discharge your responsibilities? It should state that the TPA firm is not a fiduciary of the plan and that you will rely on the instructions of the plan fiduciary in carryng out your responsibilities which are presumed to be in accordance with applicalbe laws.

[PensionPro]

Question: A doctor who is a partner in an anesthesiology practice has supposedly terminated and is now an independent contractor. We are being told he is paid on a 1099 and is no longer a W-2 employee. But he is still an owner of the practice. He wants to take a distribution from the plan. I'm not sure where to go with this. This doctor is also a trustee. As a TPA firm, how much should we really question this?

You will need to know whether the sole prop and the group practice are related employers before you can process the distribution.