Mr Bagwell Posted January 11, 2017 Posted January 11, 2017 We have a 401(k) plan that just keeps giving all year long...... If I use some incorrect terminology, please bear with.... We have a 401k plan (Jelly(k))for a group of attorneys. A org setup, PC. Pretty straight forward at this point. However, there is an attorney in the same building/floor that is NOT part of the A org PC, not an employee of said employer, that is practicing too. He has 3 employees that are run under the Jelly(k) employer for benefits and payroll. So the 3 employees get a w-2 from Jelly(k). The attorney then reimburses Jelly(k) for the 3 employees expenses. The interesting part is that the 3 employees deferrals go to the separate attorney's 401k plan. I don't think this is correct. Can this work? I'd think the 3 employees deferrals would belong to Jelly(k)'s plan, not the other. What are your thoughts on this?
ETA Consulting LLC Posted January 11, 2017 Posted January 11, 2017 I think it's something that's good for the belly :-) MoJo 1 CPC, QPA, QKA, TGPC, ERPA
Mr Bagwell Posted January 12, 2017 Author Posted January 12, 2017 Jelly(k) was the fictitious name of the employer..... The employer is handling the payroll and benefits for another attorney's employees. But the attorney's employees deferrals are going to said attorney's 401(k) plan, not the one we administrate. I have seen PEO arrangements like this.....but I'm guessing that is not happening here.
QDROphile Posted January 12, 2017 Posted January 12, 2017 See what the plan document of the non-W-2 employer says about leased employees. The W-2 employer has some plan reading to do as well.
rcline46 Posted January 12, 2017 Posted January 12, 2017 Seems to be a typical Common Paymaster set up, not a PEO or anything like that. For me, everything is fine. MoJo 1
Mr Bagwell Posted January 12, 2017 Author Posted January 12, 2017 I was doing some reading on the Common Paymaster. It talks of related employers. I don't think there is anything related other than location and some business may flow back and forth. I'm under the impression that the employees aren't leased. They do the work of their own attorney. I'm not overly concerned, just learning....
david rigby Posted January 12, 2017 Posted January 12, 2017 The employees of the other attorney get a W-2 that has the employer name and EIN for Jelly? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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