Participating Employer Question

[Dougsbpc]

We took over a 401(k) Plan with four physicians and about 17 employees. The plan sponsor is a corporation and each of the physicians is employed by their own corporation. Each physician corporation owns 25% of the plan sponsor.

The plan document lists each Physician's corporation as a participating employer stated as follows:

Notwithstanding Article XXX, the following will be Participating Employers in the ABC Corp Medical Group 401(k) plan effective January 1, 2025:

Corporation 1 Joseph Smith M.D., Inc.,  Corporation 2 ..............etc showing all four corporations.

Article XXX indicates that any related employer can adopt the plan as a Participating Employer by completing a Participating Employer Adoption page.

I don't believe any of the Physician Corporations executed a Participating Employer Adoption page but they are stated as Participating Employers in the plan document.

Even though physician corporations are listed as Participating Employers in the Plan document, this seems somewhat flimsy.

What we would like to do is have each Physician Corporation adopt the plan by completing a Participating Employer adoption page before September 15, 2026. They are then in-line with the Secure Act in adopting after the 2025 year end up to their extended tax filing deadline. They are currently on extension until September 15, 2026.

Anyone have any comments on this?

Thanks.

 

 

 

 

[BG5150]

Did you ask the authors of your plan document?  (Relius?  Datair?  FTW?  Individually designed?)