A group of related employers consisting of two or more organizations that maintain a service relationship and, in certain cases, also share an ownership relationship.

The concept of treating an individual as having ownership in a company, even if they do not directly own any portion of it. This typically applies to the spouse, children, or parents of an actual owner.

In a 401(k) plan, once a participant reaches the age of 50, they become eligible to make an additional elective deferral. The allowable catch-up contribution amount is determined annually by the IRS.

A group of related employers connected through common ownership. Generally, a common ownership threshold of at least 80% is required for the group to be classified as a controlled group.

A participant’s income that qualifies for benefit calculations under a retirement plan. This income must be subject to Social Security and payroll taxes. Distributions or dividends passed through to an owner of an S-Corporation or LLC are not considered eligible compensation.

A person is considered a fiduciary if they can be described as one of the following:

• Management - The act of exercising discretionary authority or control over the administration of a plan, or exercising authority or control over the management or disposition of its assets.
• Investment Advice - A person who provides investment advice for a fee or other compensation, whether direct or indirect, concerning any assets of the plan, or who has the authority or responsibility to provide such advice, even if it is not actually given.
• Administration - The person who holds discretionary authority or responsibility in the administration of the plan.