Prime Benefits
|
Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
|
Southern Pension Services
|
Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
|
Advanced Plan Designs, LLC
|
Pension Rights Center
|
Carpenter Morse Group
|
Howard Simon & Associates
|
Small NY Actuarial TPA Firm
|
Definiti
|
Southern Pension Services
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
![]() |
![]() ![]() ![]() |
Question 2: Suppose Recipient leases all its employees, other than its owner, from ABC Staffing Firm. ABC has a 401(k) plan which covers the workers leased by Recipient. Recipient wants to set up a money purchase pension plan. Assuming these workers are leased employees, can Recipient offset the contributions and deferrals to the ABC 401(k) plan? |
Answer: If the workers are leased employees, then yes it can. 414(n) specifically provides that contributions by the leasing organization are deemed made by the recipient. |
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.
Related links: |