austin3515 Posted September 23, 2017 Share Posted September 23, 2017 Plan sponsor terminated it's sole employee. Only remaining employees are partners. Sole employee takes a distriubtion in 2017. I assume I can just start filing a 5500-SF as a 1 participant plan, correct? Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted September 24, 2017 Share Posted September 24, 2017 Yeah, in 2018. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
austin3515 Posted September 26, 2017 Author Share Posted September 26, 2017 I thought some people had question whether a plan subject to ERISA can ever turn back and be non-ERISA. Has that been thoroughly debunked? The instructions say this, and this plan meets this definition: A “one-participant plan” is: (1) a pension benefit plan that covers only an individual or an individual and his or her spouse who wholly own a trade or business, whether incorporated or unincorporated; or (2) a pension benefit plan for a partnership that covers only the partners or the partners and the partners’ spouses. Thus, a “oneparticipant plan” can cover more than one participant. On the other hand, merely covering only one participant does not make you eligible to file as a “one-participant plan” unless you are one of the types of plans described above. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted September 26, 2017 Share Posted September 26, 2017 20 minutes ago, austin3515 said: I thought some people had question whether a plan subject to ERISA can ever turn back and be non-ERISA. Has that been thoroughly debunked? The instructions say this, and this plan meets this definition: A “one-participant plan” is: (1) a pension benefit plan that covers only an individual or an individual and his or her spouse who wholly own a trade or business, whether incorporated or unincorporated; or (2) a pension benefit plan for a partnership that covers only the partners or the partners and the partners’ spouses. Thus, a “oneparticipant plan” can cover more than one participant. On the other hand, merely covering only one participant does not make you eligible to file as a “one-participant plan” unless you are one of the types of plans described above. It did cover an employee in 2017 though, so how would it meet the definition of a "one-participant plan"? Link to comment Share on other sites More sharing options...
austin3515 Posted September 26, 2017 Author Share Posted September 26, 2017 I mean in 2018 I want to file the 5500SF as a one-participant plan. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted September 26, 2017 Share Posted September 26, 2017 Yep for 2018 I agree its a one-participant plan Link to comment Share on other sites More sharing options...
chc93 Posted September 27, 2017 Share Posted September 27, 2017 A few years ago, I did this. Was filing a Form 5500-SF for sole prop plus 1 employee. Employee terminated, so in the following year (and future years), the Form 5500-SF was checked as a one-participant plan. Haven't had any questions. Option was to switch to a 5500-EZ, but thought that continuing with electronic filing using 5500-SF as one-participant plan would minimize/eliminate any questions. And as a confirmation with respect to public disclosure, I went to look on DOL/EFAST for the filing, and the one-participant 5500-SF did not show up... while prior years 5500-SF's continued to show up. All future one-participant 5500-SF's also do not show up. Link to comment Share on other sites More sharing options...
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