Transfer 401k to PEO 401k

[goldtpa]

Have a client that has signed up with a PEO. They are transferring their single employer 401k to the PEO's multiple employer plan. As this is my first PEO transfer, what paperwork is required? Is there some type of amendment that is required?

Thanks in advance.

[hr for me]

You need to get a copy of the PEO contract/agreement that defines their new role.

I am a bit curious why the PEO isn't offering advice as that is going to be their new role. I would expect them to tell the client what is needed to close their plan to become part of the PEOs plan. They must have had dealt with this ALOT. (I wasn't around when our company went TO the PEO but was hired to pull them OUT of the PEO. I know that there was a prior plan that had to be closed/terminated when they moved to the PEO. All the employees were rehired by the PEO and became immediate participants in their plan. I think most rolled there balances to the PEO, but I don't think they were required to do so. But that's been a good 15+ yrs ago. I know they didn't take terminated employee balances because I had one unexpectedly show up about 7 years ago and he still had money in the old plan (without my knowledge-- we had moved locations and weren't getting any statements or letters).

I wouldn't expect to stay their TPA as that is usually a role the PEO takes to save the client some money.

[GBurns]

Except for Texas, where a law was passed, I have never seen or heard of a PEO hiring client employees, which would be consistent with the usual situation wherein the PEO is not the common law emloyer. Only the common law employer can hire or fire client employees.

I am not sure that this Texas law pre-empts Federal law especially the IRC.