LLC Taxed as S-Corp - Family Attribution for Form 5500

[401kWhisperer]

Hi, 

I know this has been posted a few times over the years but our actuary is questioning the reasoning. 

We have an LLC that is taxed as an S-corp.  The owner only has one employee, her mother.  Based on several discussions, I thought they would file an EZ.  However, our actuary disagrees and based on 29 CFR §2510.3-3 says that it is should be an SF.  The 2025 Form 5500 filed for the 401(k) plan by a big box TPA filed as SF.  

What say you?  Does it matter that it's an LLC taxed as an S-corp - does it actually have to be an SF corp? 

I used these prior discussions to build my case:

 

 

Solo 401(k)Plan - 401(k) Plans - BenefitsLink Message Boards

2% Sharholder of S-corp: attribution included for 5500-EZ - Form 5500 - BenefitsLink Message Boards

 

thanks!  Hope you are all having a nice long weekend.