Investment Application... Solo plan... "is plan an ERISA plan?"

[Basically]

This plan is a single member business plan run according to all typical ERISA and DoL requirements.  It's a qualified plan using an IRS approved plan document.  But technically, is it an ERISA plan? For this new plan investment the sponsor wants to invest in, do they check the box "yes" this is an ERISA plan?

[Paul I]

With the obvious? assumption this is an owner-only plan, technically it is not an ERISA plan (and is not subject to all typical ERISA and DOL requrements like filing a 5500, keeping in mind that the 5500-EZ is solely an IRS form).

It is worth noting that it is relatively easy for an owner-only plan to become an ERISA plan by having an employee become eligible to participate, particularly with the new LTPT rules in place now.  It may be worth posing the question "Why are you asking this question?" to see what are the implications for this investment if the plan's status is an ERISA plan or is not an ERISA plan.

[Peter Gulia]

Read carefully the investment’s application form and its instructions.

An investment issuer might classify as an “ERISA” plan one to which Internal Revenue Code § 4975 applies, even if ERISA’s title I does not govern the plan.

[Basically]

This client has always been a single member business... not worried about losing that status.   They are simply looking to make an investment and the application is asking "is this an ERISA plan".   I think after googling and reading all different articles and posts I understand that ERISA was created solely to protect plan participants.  I see that when you have a single member business with no one to protect, well, those ERISA rules don't apply... aren't necessary.  I run/advise Solo plans like plans with employees.  I think I just looked at the Solo plan as an easier plan to handle due to not needing to be worried about coverage, non-discriminiation and other necessary requirements that a larger plan must provide/adhere to.   

I will let them know that the plan is indeed not an ERISA plan.    I will add that the plan is a Qualified Retirement Plan as it meets all the IRS requirements.  

Thanks for your input and help.