Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
|
Hessel & Associates, LLC
|
United Benefit Pensions Inc.
|
Aimpoint Pension
|
Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
|
Nicholas Pension Consultants
|
Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
|
Retirement, LLC
|
Site Manager / Senior Administrator Nicholas Pension Consultants
|
Sentinel Benefits & Financial Group
|
Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
|
Manager - Defined Contribution Plans M2B Retirement Consulting LLC
|
Retirement, LLC
|
MGKS
|
NFL Player Benefit Office
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|
|
Question 64: How are deferrals accomplished when a leased employee is included in a 401(k) plan of the recipient? Is the compensation paid by the leasing organization (PEO) considered to be compensation paid by the recipient for purposes of the recipient's 401(k) plan? Is the deferral withheld by the PEO and then a check mailed to the recipient's plan? Is it permissible for each client of a PEO to have a 401(k) plan that only covers its own leased employees if an attorney has determined that the employees of each client are employees of each recipient under 414(n) when each leased employee has worked for the applicable client on a substantially full-time basis for at least a year? Is it acceptable for each recipient to be the sole sponsor of the plan (no dual sponsorship)? |
|
Answer: Handling a 401(k) in a leased employee situation can be tricky, as these questions show. Here are my thoughts:
|
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: |