mming Posted Saturday at 01:29 AM Posted Saturday at 01:29 AM We had an inquiry today about a "cash distribution profit sharing plan that is in compliance with 29 CFR Part 549". Researching this, we found a lot of info that implied that it's a normal PSP, but even the TPAs we work with didn't know exactly what this was. Does anybody know what this and how it may differ from a traditional qualified 401(a) PSP? All assistance is appreciated.
Peter Gulia Posted Saturday at 06:41 PM Posted Saturday at 06:41 PM In the Code of Federal Regulations’ title 29, part 549 is four rules about whether a plan is a “bona fide profit-sharing plan or trust” to meet Fair Labor Standards Act of 1938 § 7(e)(3)(b). Here’s the first of those four sections: 29 C.F.R. § 549.0 https://www.ecfr.gov/current/title-29/section-549.0. It’s about not counting a profit-sharing bonus in an employee’s “regular rate of pay”, which matters to determine overtime wages. This is not advice to anyone. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
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