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I have been asked to propose a 401(k) Plan for a business (LLC) that covers a family (father, mother, and child) group. The owner wants to set up the plan solely for the benefit of his daughter, who is an employee of the company and receives compensation that will be reported on a W-2. He and his wife do not anticipate utilizing the plan for themselves.

My question is that if this plan is set up, does the plan file a Form 5500-EZ or the SF Form? The Form 5500-EZ is "Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan. Would the EZ apply because the daughter is an owner by attribution? Or, since she is not an actual owner or their spouse, is the 5500-SF the form to file?

Thanks for any replies.

 

Posted

SF

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

  • 2 weeks later...

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