Can brothers use Uni-(k)?

[Guest Commuter Rex]

Family owned business, not a partnership, owners are 2 brothers plus wife of one is sole employee. They have been shown a Uni-(k), but I haven't seen this type of relationship mentioned as eligible for individual 401(k) arrangement. Any ideas?

[Bird]

A uni-k is just a 401(k) plan marketed to 1-person businesses. This company could probably adopt said "uni-k" but they will have to file a tax return and do other things that might not be expected if they just read the marketing literature.

[Appleby]

I don’t see why not. The employer is eligible to adopt the plan, providing only the business owner is eligible to participate. They are all business owners so they should be fine IMHO.

[Appleby]

Bird, ahead of me by a milli-second . You make a good point. The exception to filing the Form 5500 series return may not apply as they may not be eligible to file Form 5500 EZ