thepensionmaven Posted March 12, 2018 Posted March 12, 2018 A 100% owner of the business has a 401K with less than $250K in assets. She also has an employee that does not work and has never worked over 1,000 hours. Under plan characteristics code, there is an item 3(e) - one participant plan that passes minimum coverage, which seems to apply here. Payroll company seems to think Form 5500-EZ must be filed.
Mike Preston Posted March 12, 2018 Posted March 12, 2018 No way. But whether a 5500-SF is required depends on the document provisions. If the employee is a participant by plan terms, even if no deferral and no ER contribution, then an SF is required.
thepensionmaven Posted March 13, 2018 Author Posted March 13, 2018 Terms of plan are age 21 with 1,000 hours. Period. Seems like coverage has been passed?
CuseFan Posted March 13, 2018 Posted March 13, 2018 Coverage passes as employee is statutorily excluded, you have an owner-only plan that files the EZ. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Mike Preston Posted March 13, 2018 Posted March 13, 2018 5 minutes ago, CuseFan said: Coverage passes as employee is statutorily excluded, you have an owner-only plan that files the EZ. < 250k, though, so no EZ for now.
BG5150 Posted March 14, 2018 Posted March 14, 2018 Can always file a one-participant SF, too... QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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