Schools, charities and other nonprofit entities that offer 403(b) retirement savings plans will be required to file a complete Form 5500 for their 2009 plan year and all subsequent years. Previously, the filing requirements for 403(b) plans were limited to the first page of Form 5500 identifying only basic information such as the plan name, plan sponsor, etc. Now, a complete Form 5500 will be required, although Form 5500 SF or Form 5500 EZ may be an option for "one participant plans". Section 403(b) plans that have more than 100 participants are also required to submit to an annual, independent audit and submit supporting schedules with their Form 5500, including their audited financial statements.
A "one participant plan" is a pension benefit plan that covers only an individual (or an individual and his/her spouse) who wholly owns a trade or business whether incorporated or unincorporated or a pension benefit plan for a partnership that covers only the partners or the partners and their spouses.
Thus, despite the name, a one participant plan may in fact have more than one participant. Moveover, a plan that has only one participant may fail to qualify as a "one participant plan" if that participant is not an owner or a partner. (You gotta love IRS terminology. Things never mean what they seem to on the surface.) See, the IRS Form 5500 Instructions for more information. If you require assistance completing Form 5500, please contact the law office of Laurel Anne Markus PC.
