PEO-sponsored 401(k) Plan - pros and cons

[Guest lbart]

Can anyone expand upon my thoughts regarding PEO-sponsored 401(k) plans. From my perspective, they seem to serve a purpose for a smaller company (under 20 EEs or so), but become less attractive as an employer grows larger. Any direct experience with terminating such a relationship and the particulars of that process would be appreciated.

[Guest EAH94612]

This may not be responsive to your inquiry but one point that strikes me is if you are using a PEO to manage your payroll and thus the tax id your employees are registered to is the PEO's EIN - can the tax ID for the 401k Plan be different from that of the employees? If not, I doubt the PEO will let someone outside their control use their EIN.