Solo 401(k) owner-only eligibility for Form 5500-EZ
The common-law employee question that decides whether a simple one-participant packet is still the right lane.
Summary
Form 5500-EZ is for one-participant plan scenarios, such as owner-only or partner-only plans and their spouses. If the business has common-law employees covered by the plan or facts that could affect coverage, the simple Solo 401(k) packet lane should stop before form preparation.
Hard stop: non-owner common-law employee issues do not belong in this MVP.
| Supported | Owner/spouse or partner/spouse planDomestic one-participant defined contribution cases only. |
|---|---|
| Unsupported | Common-law employee plan issuesCoverage, controlled group, and affiliated service group questions need review. |
| Output | Self-preparation packetNo TPA, ERISA, fiduciary, or plan-design advice. |
The owner-only question comes first
Do not start with balances. Start with plan coverage. A Solo 401(k) filing packet is only safe for this product when the plan is in the one-participant lane and the business does not need employee coverage analysis.
Why employees change the risk
Employees can create plan coverage, testing, notice, eligibility, and administration questions. Those questions are not resolved by preparing a Form 5500-EZ packet. They belong with a qualified plan professional or official instructions.
How Solo 5500 Desk handles the boundary
The wizard asks hard-stop questions before collecting form numbers. If the user indicates non-owner employee issues, late filings, amendments, IRS correspondence, or complex plan facts, the product should stop rather than produce a misleading packet.
Common questions
Can I use the app if I hired employees during the year?
Not without a careful scope check. The MVP hard-stops common-law employee and coverage issues because they can move the plan out of the simple one-participant lane.
What about my spouse?
Owner/spouse and partner/spouse one-participant scenarios are part of the intended lane when the other facts are simple and domestic.
Does the app advise on controlled groups?
No. Controlled group, affiliated service group, leased employee, and coverage-combined plan issues are outside scope.