One-participant plan

Retirement plan that covers only the business owner(s) and their spouse(s), or only partners and their spouses.

Definition

A one-participant plan, in IRS Form 5500-EZ usage, is a defined contribution or defined benefit plan where the only participants are an individual (or husband and wife) who wholly owns a trade or business, or one or more partners (or partners and their spouses) in a partnership. A single common-law employee covered by the plan ends one-participant status.

Official source: IRS Instructions for Form 5500-EZ

Related terms

Solo 401(k)401(k) retirement plan covering only a self-employed business owner and optionally their spouse.Common-law employeeA worker the IRS classifies as an employee under the common-law right-of-control test, distinct from independent contractors.