Pension Rights Center
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Plan Compliance Analyst (administrator) RPA
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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Advanced Plan Designs, LLC
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Definiti
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Quantech Pensions LLC
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Small NY Actuarial TPA Firm
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Howard Simon & Associates
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Southern Pension Services
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Retirement Plan Relationship Manager Prosperity Advisors, LLC
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Southern Pension Services
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Carpenter Morse Group
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Question 261: A bank holding company (which owns a bank 100%) becomes the sole owner of an insurance agency. Should the insurance agency be included in the bank's 401(k) plan? Currently the bank holding company won't even allow the insurance agency to start a separate plan. |
Answer: Not necessarily. In responding to your question, I will refer to my book, Who's the Employer?. (Subscribers can click to view online the text of references to sections in the book.) This is a classic parent-subsidiary controlled group. (See WTE 6:03.) The group includes a parent, such as the holding company, and all its subsidiaries. As such, all employees of any of the members of the group are deemed to be employed by a single employer for retirement plan purposes. (See WTE 10:01.) It does not matter that the bank itself does not own an interest in the insurance agency. |
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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