Multiple-Employer 401(k) Plans

For PEO’s (Professional Employer Organizations) or Associations

Professional Employer Organizations (PEO’s) or associations that wish to set up a single plan to benefit two or more unrelated employers, may set up a Multiple-Employer 401(k) Plan.  Qualified Plan Consultants, LLC has highly specialized knowledge in this unique area of 401(k) plan administration. 

(Qualified Plan Consultant’s principals, Tom Lastuvka and Mick Fouts, maintain a booth at the Annual NAPEO² Conference, and the firm is an Associate Member of NAPEO.)

How a Multiple-Employer 401(k) Plan Benefits PEO’s and Their Co-Employers³ (including Associations and Their Member Companies)

PEO Advantages

Professional Employer Organizations benefit by:

• Increased client retention of co-employers.
• Possibly creating a profit center for the PEO.
• Offering another outsourced employee benefit to their co-employers.

Co-Employer Advantages

The PEO’s client companies (i.e. Co-Employers) benefit by:

• Greatly reduced administrative burdens.
• Reduced costs due to PEO handling all plan document and administration issues.
• Investment economies of scale due to pooling many employers in a single plan.

¹ TPA is a Third Party Administrator
² NAPEO is the National Association of Professional Employer Organizations
³ Co-Employer is an employer who has hired a PEO to provide payroll and benefits for its employees