What are controlled group rules?

The controlled group rules exist to prevent business owners from subdividing their company into separate companies – one employing highly compensated employees (HCEs) and the other employing non-highly compensated employees (NHCEs) – to provide a rich retirement plan to the HCEs and a lousy plan (or no plan at all) to …

What is a controlled group ACA?

How Common Ownership Affects ACA Compliance Requirements. Under §414(c) of the Internal Revenue Code, a controlled group exists when any two or more entities are connected through common ownership in a parent-subsidiary, a brother-sister, or a combination of the two controlled groups.

Do church plans have to file a 5500?

Churches and government entities are generally exempt from ERISA coverage, and it just so happens that both types of entities also frequently sponsor 403(b) plans. Such plans are not required to file Form 5500.

Can a church sponsor a 401 K plan?

As both a church and an employer, churches can sponsor all kinds of retirement plans. They include 403(b)s, 401(k)s, SEP IRAs, SIMPLE IRAs, and even defined benefit pension plans. Each kind of plan has unique features and rules that apply to it.

Is the church exempt from the Affordable Care Act?

Churches and ministries are not specifically exempt from the Affordable Care Act. Congress enacted the Affordable Care Act (ACA) in an attempt to make comprehensive and affordable health insurance more readily available to individuals and employers.

How does the ACA apply to the church?

As employers, churches and ministries must carefully consider which portions of the ACA apply to them in order to determine the appropriate steps to take. The ACA is a new, complex, and frequently evolving law.

What are controlled group and affiliated service group rules?

Controlled Group and Affiliated Service Group Rules. The Internal Revenue Code (Code) contains controlled group rules and affiliated service group rules that are used to determine if two or more employers must be grouped together and treated as a single employer for certain purposes.

What does non qualified church controlled organization mean?

For purposes of this subparagraph, the term “ nonqualified church-controlled organization ” means a church-controlled tax-exempt organization described in section 501 (c) (3) that is not a qualified church-controlled organization (as defined in section 3121 (w) (3) (B)).