metsfan026 Posted August 28 Share Posted August 28 One of our clients is running into an issue with the testing due to being an employee owned cooperative (we don't administer this plan, just their retirement plans). There are 17 employees and all are considered more than 5% owners due to the structure of the business. The people doing the testing are saying they fail “25% Key Employee Test, 55% Average Benefit Test and 25% Owners Test, since by definition everyone is considered an owner and Key Employee. Do these tests apply to a Plan under this type of structure? They are asking me for guidance, but this isn't my forte. Thanks! Link to comment Share on other sites More sharing options...
Peter Gulia Posted August 28 Share Posted August 28 Even if one assumes a member of a cooperative might be a highly-compensated individual, an employer might ask its service provider what comparisons the software applies when all employees are highly-compensated and none is other than highly-compensated. This is not advice to anyone. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
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