SoloK plan and Participating Employers

[cpc0506]

We have a long standing client who sponsors a soloK plan.  His wife just established her business and he would like add her company to his plan as a Participating Employer PE.    This may or may not be a Control Group.  This will need to be determined.

Aside from that issue, is a plan still a soloK plan if there are PEs?  Would your answer be the same if this is a GG, or if adding the PE makes this a MEP.

 

Thanks for your guidance.

[CuseFan]

A "soloK plan" is a product with the fancy marketing moniker - are you asking if this would still be considered an owner-only plan with those ERISA exemptions and subject to 5500-EZ filing requirements? If CG, I think yes but, if MEP I'm not so sure. If not CG (yet), easy enough to get there by having one of them involved in the other's business in some minor fashion.

[cpc0506]

would your response be the same if both entities or sole-props and not corporations?

[Nate S]

On 3/18/2022 at 4:57 PM, cpc0506 said:

would your response be the same if both entities or sole-props and not corporations?

In the guise of a husband - wife arrangement, no.  But from a practical standpoint its almost impossible for husband - wife sole-proprietorships to be unaffiliated.