Retirement, LLC
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Manager/Supervisor of Benefits and Payroll Compensation Virginia Farm Bureau
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Jocelyn Pension Consulting
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Jordan & Associates Retirement Services
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Defined Contribution Plan Administrator Pension Investors Corp of Orlando Inc
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SWBC Retirement Plan Services
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Premier Plan Consultants
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Howard Simon & Associates
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Pension Rights Center
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Small NY Actuarial TPA Firm
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Prime Benefits
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Retirement Plan Administration Assistant Jordan & Associates Retirement Services
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Question 257: I am the owner and sole employee of a corporation. I also have a sole proprietorship with no employees. Because these businesses are under common control, I must file a full Form 5500. Am I subject to the small plan audit requirements? |
Answer: Mercifully, no, but you wouldn't discover that by reading the Form 5500's instructions. A couple of days later someone got back to me to show me the regulation saying that a one-participant plan is not subject to Title I (which I had stated in my phone message). I got her to understand the issue, educating her in the process on how it is that an ASG member can have a one-participant plan. She said she'd kick it upstairs to one of the folks who writes the regs and get back with me. She called back a couple of hours later to say, in effect, "We agree with you that the plan is not subject to the audit requirements as far as we're concerned. All we do is hand things off to the IRS and so we don't care whether you do an audit or not. But the IRS may care. Why don't you call them and see if they want you to file an audit?" (Incidentally, be sure to enter code 3G on line 8A of the 5500. That tells the DOL that this is an IRS-only return and the DOL should ignore you.) |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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