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PEP (Pooled Employer Plan)

Plan Types

A type of multiple employer retirement plan created by the SECURE Act of 2019 that allows unrelated businesses to join a single 401(k) plan managed by a Pooled Plan Provider (PPP). PEPs reduce administrative burden and costs for small employers while providing fiduciary oversight. Unlike older MEPs, one employer's compliance failure doesn't disqualify the entire plan.

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