Do all owners of a C Corp have to participate in a 401K

[tertue]

Small C Corp is owned by a son and his wife, another son and his wife, and mother (her husband is deceased). Only one employee (one of the sons) works and draws W2 pay. Can the C Corp establish a Solo/Individual 401k with the working son being the only participant in the 401k....or must all owners participate in the 401k even though they don't draw any pay?

[K2retire]

With a corporation as the plan sponsor, the only people who are allowed to participate are employees who receive W-2 income.

[Bird]

With a corporation as the plan sponsor, the only people who are allowed to participate are employees who receive W-2 income.

True. Just be careful with the "Solo/Individual 401k" stuff; there is no such actual animal; it's just a marketing name. You'd be establishing a regular qualified plan, complete with compliance and filing requirements, including 5500 fillings, since the participant is not a 100% owner.

[tertue]

With a corporation as the plan sponsor, the only people who are allowed to participate are employees who receive W-2 income.

True. Just be careful with the "Solo/Individual 401k" stuff; there is no such actual animal; it's just a marketing name. You'd be establishing a regular qualified plan, complete with compliance and filing requirements, including 5500 fillings, since the participant is not a 100% owner.

what is the difference in compliance and filing requirements, including 5500 fillings between a Solo/Individual 401k and regular QP?

[Bird]

what is the difference in compliance and filing requirements, including 5500 fillings between a Solo/Individual 401k and regular QP?

I just said there is no such thing as a Solo/Individual 401k...but to answer the question you meant:

If you have a 401(k) plan that only covers owners (not quite that simple), then you have a qualified plan. The plan itself is a "regular" QP - you still have limits, document requirements, etc. But, most of the testing compliance stuff goes away because there is no one to discriminate against. And, for 5500 filing, you don't have to do it all, if assets are under $250K (except in the final year of the plan) and you can file an EZ if assets are over $250K.