Controlled Group - Form 5500-SF

[Guest MrsJones]

I have a client who owns 100% of two companies:

Company A has employees who participate in the company’s 401(k) Plan. Owner and spouse also participate in Company A’s plan.

Company B does not have any employees other than Owner and spouse. Company B’s DC plan is frozen MP Plan.

Question: For 2010 am I required to file Form 5500-SF or may I file Form 5500-EZ for Company B’s plan?

[ETA Consulting LLC]

Yes, it does not cover any employees other than the owner and spouse; so it is not subject to Title I of ERISA. You should be able to file a 5500 EZ. This will be the case without any rule stating that you cannot file a 5500 EZ for a plan covering only the owner (and spouse) if there is another plan of the company covering common law employees.

Good Luck!