The problem with starting college and dorming is that your roommate or suitemate might be a maniac. You get connected to these people through a random draw.
When starting a Pooled Employer Plan (PEP) and running it, you have the problem that these unrelated businesses from all occupations join together. It’s not a random draw, but you might have to deal with their bad habits.
The biggest problem for 401(k) plans these days is late deferrals and with so many adopting employers, you will likely end up with one. That’s a big problem. Just had an issue with an adopting employer who didn’t know his company was still deferring, so the deferrals ended up in his pocket to float a dying business. Needless to say, I made sure that things were fixed. Running a PEP, you might see yourself as being at the mercy of the adopting employers. Shape them up or end up shipping them out.
