Draper55 Posted February 24, 2023 Posted February 24, 2023 The 5500EZ can be used if it(the plan) is for only a owner and spouse or only partners and spouses..It seems this extends to the bonding coverage exempton as well. If we swapped partners for members of an LLC would this work or are we stuck with a pure partnership concept?
C. B. Zeller Posted February 27, 2023 Posted February 27, 2023 Bonding is a Title I requirement. Plans which are exempt from Title I, including plans which cover only a 100% owner and their spouse, or only partners and their spouses, are therefore exempt from bonding. Prior to 2020, these were also the only plans that were able to file 5500-EZ, but that distinction has been modified slightly with the new rule for 2% shareholders in an S corp. Bill Presson 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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