Advanced Plan Designs, LLC
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Southern Pension Services
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Small NY Actuarial TPA Firm
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Howard Simon & Associates
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Carpenter Morse Group
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Pension Rights Center
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Southern Pension Services
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Definiti
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Plan Compliance Analyst (administrator) RPA
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Quantech Pensions LLC
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Retirement Plan Relationship Manager Prosperity Advisors, LLC
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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Question 192: In Q&A 190 you give an example of Zeke, a retired executive on a consulting agreement. He's paid as in independent contractor but he's still legally an employee. Would it be possible for the employer to define an acceptable class of employees to be excluded from the qualified plan so that Zeke would be considered as having changed to an excluded class of employment? If so, what might the class be called? | |
Answer: Absolutely he can be excluded. There is no reason why the plan couldn't provide that anyone who receives a 1099 and not a W-2 from the company is excluded.
For further discussion of this TAM and the exclusion of employees, see Chapter 2 of my book Who's the Employer. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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