Affiliated Service Groups

[Guest Jae]

I seem to remember a regulation or something that says that if an entity is a member of an affiliated service group at any point during the year, the entity is considered part of the group for that whole year. Can anyone confirm this for me with a cite? I can't seem to locate my source now.

Thanks.

[Kirk Maldonado]

The affiliated service group rules are in Code Section 414(m).

[Guest mo again]

jae, I don't recall seeing anything specific like that. I know of situations where entities who were about to enter into an affiliated service group relationship froze their plans before doing so, to avoid coverage and/or nondiscrimination issues. However, I could see where the extent and nature of services being provided should not be subject to daily evaluation, but would need to be looked at over a broader period. Have you thought about posting your question in the Who's the Employer Q & A column?

[billfgrady]

Does anyone have an answer to the question posed here? I've been through Section 414(m) and the proposed regulations without any luck.

[david rigby]

Perhaps this Q&A column can help:

http://www.benefitslink.com/qa_columns/who...yer/index.shtml

[billfgrady]

Pax,

Thanks for the suggestion. Unfortunately, I've looked there and had no luck. Perhaps an administrator would be willing to post this question to the "Who's the Employer" Q&A Section?