SAR for one-participant plans

[cpc0506]

Can anyone point to me the code that states that an SAR is not required for a one participant plan?

Also, does this still apply if the one-participant plan is filing a Form 5500-SF instead of the Form 5500-EZ.

[Tom Poje]

just what information in the SAR does the person in question not have access to? They sign the 5500 , and the SAR is pretty much a condensed version of that.

I could be wrong (the brain gears are getting old), but as I recall

someone once told me that though the form says 'participants' it really means employees, and owners are not considered to be an 'employee'

What is my status in the business?

• Sole proprietorship - you are the owner, not an employee.

• Limited liability company - you are most likely an owner (member), not an employee, unless you elect to be taxed as a corporation (see below).

• Partnership - you are an owner, not an employee.

• Corporation - you are an employee if you actively work in a position in the corporation. You are also a shareholder and you are also on the board of directors, so you have multiple roles.

• S corporation - you are an employee if you actively work in a position in the s corporation, and you are also a shareholder. Read more about self-employment and payroll taxes for S corporation owners.

[david rigby]

Admittedly unlikely, it's possible to have a one-participant plan where the participant is not owner, shareholder, partner, or sole proprietor.