Two Employers Same Owner

[thepensionmaven]

My question concerns the 5500s.

My client owns two companies, obviously a controlled group.  He is the only employee in each company.

Since they are two employers, do we need aggregate the assets for purposes of the $250K threshold for filing.

[Bill Presson]

2 minutes ago, thepensionmaven said:

My question concerns the 5500s.

My client owns two companies, obviously a controlled group.  He is the only employee in each company.

Since they are two employers, do we need aggregate the assets for purposes of the $250K threshold for filing.

He has a plan for each company?? It's a combined 415 limit, so what's the advantage?

[thepensionmaven]

Yes, there is a DB for one company and a 401K/PSP for the other company.  I know it's a combined 415 limit, but are the two employers treated separately for the purposes of the $250K threshold.

The reason for the two different plans, is we set up the DB first, and no one looking into the matter ever considered asking if there was another plan.

[Bill Presson]

Since it's a controlled group, I would think this (from the instructions) would apply: "A one-participant plan sponsor must file a Form 5500-EZ (or a Form 5500-SF with the one-participant plan box checked) when the plan’s total assets and the assets of all their other one-participant plans at the end of the plan year are greater than $250,000."

[Larry Starr]

7 hours ago, thepensionmaven said:

My question concerns the 5500s.

My client owns two companies, obviously a controlled group.  He is the only employee in each company.

Since they are two employers, do we need aggregate the assets for purposes of the $250K threshold for filing.

Yup!  Of course, as noted in a recent string of responses, we ALWAYS file a 5500 for every plan. Otherwise, you have not started the statute of limitations running on the plan, and that's a bigger potential problem than just filing a 5500. FWIW.