EZ-K - Qualification Rules

Who Qualifies for Form 5500-EZ Filing?

Businesses which satisfy the following conditions:

  1. The plan is a one-participant plan. This means that as of the 1st day of the plan year for which this form is filed, either:
    a. The plan only covers you (or you and your spouse) and you (or you and your spouse) own the entire business. (The business may be incorporated or unincorporated); OR
    b. The plan only covers one or more partners (or partner(s) and spouses(s)) in a business partnership.

  2. The plan does not provide benefits for anyone except you, or you and your spouse, or one or more partners and their spouses.

  3. The plan does not cover a business that is a member of:
    a. An affiliated service group,
    b. A controlled group of corporations, or
    c. A group of businesses under common control.

  4. The plan does not cover a business that leases employees.

  5. The plan does not cover a business that employs people who are not related to the owners (children, grandchildren, parents)

Who Qualifies for the TSC EZ-K Plan?
Ownership Structure
Governmental Reporting Requirements
None
5500-EZ
5500
Individual or Husband & Wife own 100% with no other employees and all plans' assets are $100,000 or less
X
    
Individual or Husband & Wife own 100% with no other employees and all plans' assets exceed $100,000  
X
  
Individual or Husband & Wife own 100% with related employees (i.e. children, grandchildren or parents) and no other employees    
X
Partners(& spouses) of an unincorporated business with no other employees and plans' assets are $100,000 or less
X
    
Partners(& spouses) of an unincorporated business with no other employees and plans' assets above $100,000  
X
  
Partners of an unincorporated business with employees (i.e. children, grandchildren or parents) and no other employees    
X
Non spousal owners of an incorporated business with related employees (i.e. children, grandchildren or parents) and no other employees    
X

1. The plan does not cover a business that is a member of:
a. An affiliated service group,
b. A controlled group of corporations, or
c. A group of businesses under common control.
2. The plan does not cover a business that leases employees.
3. The plan does not cover a business that has employees who are not children, grandchildren, or parents of owners.

PLEASE NOTE: Non-profits cannot have owners, so it is unlikely a nonprofit can have an EZ-K.