Form 5500-SF for partners only plan

[cpc0506]

A plan covers 3 partners of a company. No other employees. We will be filing Form 5500-SF for 2014. In prior years, the TPA did not check on the Form 5500-SF 'one participant plan'.

Question is: Should this box be checked in this instance? I say yes. Is there a problem with now marking the SF as a one participant plan this year when it was not marked in previous years.

This question has come up because there is no bond for the plan and there does not need to be one but if the one-participant box is not checked, and the plan has no bond reported on the Form 5500-SF, I have concern the client will be contacted by DOL for lack of bond.

[K2retire]

For what it's worth I've never had the DOL ask about a missing or too small bond -- even on plans with lots of employees.

[jpod]

Why don't you file the 5500-EZ if the plan covers only partners in a partnership?

[Calavera]

What is the business structure, partnership or corporation? If partnership, it is a one-person plan. If corporation, it is not a one-person plan.

[cpc0506]

Business structure is partnership.

Electroncially Filing a Form 5500-SF guarantees the filing has been made; with a paper Form 5500-EZ, that is not always the case.

As for the bond, there is some initiative out there from the DOL/IRS regarding the Form 5500-SF filing for audit waiver but not showing a bond on the tax return.

[jpod]

I happen to think the preference for electronic filing is curious, but nevertheless why is there even a question here? You can't knowingly complete the SF inaccurately, so you have to check the box! Whether you should amend prior SFs is a separate issue (I wouldn't).

[chc93]

I've switched from the 5500-SF "regular" to checking the one-participant box in a later year (only employee terminated). No problems yet...