Compliance December 4, 2003

IRS Bulletin Covers PEO K Plans

April 24, 2002 (PLANSPONSOR.com) - A multi-employer 401(k) plan or other retirement account maintained by an employee leasing company will be treated as any other tax-qualified plan by an individual employer, the Internal Revenue Service (IRS) said.

Reported by

Fred Schneyer

According to a Dow Jones news report, the IRS guidance on plans by professional employer organizations (PEO)s after questions were raised about their tax status.

PEOs typically contract with firms to provide human resources and personnel services including maintaining a retirement plan.

The IRS guidance will be published in the May 19 Internal Revenue Service Bulletin.