• Most qualified retirement plans with
more than one participant.
• Nonqualified plans covering "top hat" employees. May satisfy
the
Important: For
purposes of this rule, any person eligible to participate is counted,
whether they actually participate or not.
Plans Exempt from Filing IRS Form 5500
• Most Simplified Employee Pensions
(SEPs).
• One-participant plans with $100,000 or less in assets.
• Unfunded welfare benefit plan with less than 100 participants.
• Welfare benefit plan that participates in a group insurance
arrangement that files IRS Form 5500 on its behalf.
IRS Form 5500-EZ
A simplified IRS
Form 5500 may be used by a business
owner who has a one-participant pension plan that covers the owner or the
owner and spouse. Those eligible to file IRS Form 5500-EZ avoid the burdensome
filing requirements of the other IRS
Form 5500's.
Requirements:
1) Business must be wholly owned by the
plan participant(s).
2) Plan must meet the minimum coverage requirements of qualified benefit
plans without being combined with other pension plans. See IRC §410(b).
3) Plan does not cover a business that is a member of an affiliated group,
group of controlled corporations, or a business that leases employees.
4) Plan has more than $100,000 in assets. If the business owner has two or
more one-participant plans, a separate IRS Form 5500-EZ must be filed for each
plan if the total value of assets of all plans is greater than $100,000.
