Affiliated Service Group

[Guest wlank]

Facts: Medical Practice, Corporation (PA) 4 MD’s each 25% owners. Profit sharing plan with max contribution. One of the MD’s has another practice (Proprietorship) which also sponsors a PSP. His total anual additions combining

the two plans has been approx. $50,000.

I just assumed duties as “Plan Administrator” for the Corp plan. I have been assured by CPA of the MD in question that this arrangement has been reviewed by a tax attorney and there is no problem. There is NO connection between the

practices, there are NO referrals, there is NO possibility of this being an Affiliated Service Group. Why am I worried?

Any insight or experience with Affiliated Service Groups would be appreciated.

Sign me;

Just a simple TPA

[Alf]

I agree with you that the arrangement is suspect, but based on the assumptions, it has to be ok, doesn't it? I would get the representations you mentioned in writing for your file and ask the client (in writing) to advise you if any of the facts change. Good luck.