BG5150 Posted September 2, 2020 Share Posted September 2, 2020 I don't know why I'm blanking on this, but we have a client where the only active "employees" are the husband and wife owners. There is one former employee who still has an account. Is this considered a 1-participant plan? MY gut says no, because I would think that the existence of that third account would require bonding of some sort. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Belgarath Posted September 2, 2020 Share Posted September 2, 2020 Right, not a 1-participant plan. Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted September 2, 2020 Share Posted September 2, 2020 Agreed. Link to comment Share on other sites More sharing options...
david rigby Posted September 2, 2020 Share Posted September 2, 2020 2 hours ago, Belgarath said: Right, not a 1-participant plan. A nice way of saying "participant" does not equal "employee" ? ? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
JustMe Posted February 18, 2021 Share Posted February 18, 2021 Same facts as above, but with a twist. How about if an employee was eligible to contribute during 2020 but didn't and then terminated before the end of the year? The plan "technically" didn't cover this employee, so could the plan file a Form 5500-EZ? Or does the fact that another employee was eligible kick them into Title I coverage? Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now