Site Manager / Senior Administrator Nicholas Pension Consultants
|
Retirement Plan Relationship Manager â DB or DC Focus Trinity Pension Consultants
|
Hicks Pension Services
|
Manager - Defined Contribution Plans M2B Retirement Consulting LLC
|
Loren D. Stark Company
|
Loren D. Stark Company
|
Aimpoint Pension
|
EPIC RPS
|
Director of Pension Administration Primark Benefits
|
CMC Pension Professionals
|
United Benefit Pensions Inc.
|
MGKS
|
Retirement, LLC
|
Senior Defined Contribution Account Manager Nova 401(k) Associates
|
401(k) Retirement Plan Administrator Midwest TPA with Remote Workforce
|
Jocelyn Pension Consulting
|
Primark Benefits
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|
|
Question 57: What is the basis of your answer to Q&A-56? The answer appears to be completlely contrary to the position taken by Treasury in the proposed 414(m) regulations (which were later withdrawn). They clearly indicated that each employer in a shared situation needs to take into account only a proportionate number of the hours worked by someone such as the staff employees in Q&A-56. | |
Answer: Before I start with what the Treasury's position is on shared employees (which is the basis of my answer to Q&A 56), let's talk about what the Treasury's position isn't, namely the proposed regulations to 414(o), not 414(m). I quote from Chapter 5 of my book, Who's the Employer?:
In other words:
Revenue Rulings 73-447 and 67-101 held that shared employees were full time employees of all parties sharing them. Both are pre-ERISA rulings, and as such, refer to Code provisions that are now obsolete. However, the logic of those Revenue Rulings is still valid.I add that my current research validates the IRS position from a common law standpoint. See Restatement of Agency, 2d Section 226. |
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: |