Who's the Employer
A Guide to Employee and Aggregation Issues Affecting Qualified Plans
Comparison of IRC 414(m) in 2002 with 414(m) as adopted
Material added to 414(m) since it was adopted is in
red italics. Material deleted is in
(m) Employees of an affiliated service group
(1) In general
For purposes of the employee benefit requirements listed in paragraph (4), except to the extent otherwise provided in regulations, all employees of the members of an affiliated service group shall be treated as employed by a single employer.
(2) Affiliated service group
For purposes of this subsection, the term "affiliated service group" means a group consisting of a service organization (hereinafter in this paragraph referred to as the "first organization") and one or more of the following:
(A) any service organization which--
(i) is a shareholder or partner in the first organization, and
(ii) regularly performs services for the first organization or is regularly associated with the first organization in performing services for third persons, and
(B) any other organization if--
(i) a significant portion of the business of such organization is the performance of services (for the first organization, for organizations described in subparagraph (A), or for both) of a type historically performed in such service field by employees, and
(ii) 10 percent or more of the interests in such organization is held by
persons who are
(3) Service organizations
For purposes of this subsection, the term "service organization" means an organization the principal business of which is the performance of services.
(4) Employee benefit requirements
For purposes of this subsection, the employee benefit requirements listed in this paragraph are--
(A) paragraphs (3), (4), (7),
(B) sections 408(k), 408(p), 410, 411, 415, and 416.
(C) section 105(h), and
(D) section 125
(5) Certain organizations performing management functions
For purposes of this subsection, the term "affiliated service group" also includes a group consisting of--
(A) an organization the principal business of which is performing, on a regular and continuing basis, management functions for 1 organization (or for 1 organization and other organizations related to such 1 organization), and
(B) the organization (and related organizations) for which such functions are so performed by the organization described in subparagraph (A).
For purposes of this paragraph, the term "related organizations" has the same meaning as the term "related persons" when used in section 144(a)(3).