Eddy

Right, I was wondering along the same lines, i.e., whether a single employee (owner) operation can also offer a dependent care plan. If so, a Trump Account plan would also seem possible. But even if not, the case maybe different for Trump Accounts programs, because section 128 notably exempts the Trump Account plan from 129(d)4, which would otherwise prevent no more than 25% of benefits going to owners. So maybe the door is open...(?). Well, maybe we'll get more guidance in the coming months.

What happens in the case of a self-employed business with only the owner as an employee (e.g. independent contractor-type businesses) and the non-discrimination provision? Can they offer a Trump Account to their employees (just themselves in this case)? Obviously, in this case, no true discrimination can occur, as there are no other employees to discriminate against. Further one could argue that we cannot calculate the average benefits paid to non-highly compensated employees (we cannot divide by zero), so the 55% rule should not apply. Is there any guidance or case law on this?