Multiple Employer Plan rules under the IRS code permit the establishment of a multiple employer plan by companies which hold a degree of commonality. The IRS code permits the adoption of a multiple employer plan (MEP) which can be sponsored by a third party. That third party may shoulder the responsibility for oversight of different aspects of the Multiple Employer Plan. This can include administration, trustee, investments recordkeeping, custody etc.
Fred Barstein, Founder and CEO of TPSU, discusses how a Multiple Employer Plan can operate and function for the benefit of plan participants and employers. In a common ownership MEP, the adopting employers do have some commonality, but the ownership is insufficient for them to be considered related employers under the Internal Revenue Code. Additional information on the Multiple Employer Plan rules can be found here.
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