With a Single(k) plan, you take on the role of both employer and plan administrator. This gives you maximum control, but also means you are responsible for tracking all contributions, rollovers, and withdrawals, ensuring IRS compliance, and preparing annual filings.

Below is a comprehensive guide to help you manage your Single(k) successfully.

Who Can Participate in a Single(k) Plan

Single(k) plans are designed for owner-only businesses with no full-time employees. Participation is limited to:

  • The business owner
  • A spouse or family member who earns income from the business (reported on a W-2, Schedule C, or Partner K-1)
  • A second business partner

Important: If a non-partner/family member employee becomes eligible to participate, your plan is no longer eligible to remain a Single(k). Contact us immediately if you plan to hire or have recently hired an employee who may become eligible.

Contributions: Deadlines and Limits

You must track and make all contributions in accordance with IRS deadlines and based on your business structure:

Employee Deferrals

  • Corporations (C or S-Corp): Deferrals must be withheld from payroll no later than December 31. Deposits should be made as soon as possible, no later than 7 business days after the payroll check date.
  • Sole Proprietors, LLCs (filing as Partnerships), and LLPs: You have until your personal tax filing deadline, including extensions, to make employee contributions.

Employer Contributions

  • Can be made up to the employer’s tax filing deadline, including extensions.

You are responsible for ensuring that:

  • Contribution limits are not exceeded
  • Deposits are tracked accurately
  • All contributions are recorded for IRS reporting

Rollover Guidelines and In-Kind Transfers

You may roll in funds from a prior employer's 401(k), IRA, or other qualified plans. Most rollovers are processed in cash, your old provider sells the investments, then sends the proceeds to your Single(k) account.

In-Kind Rollovers

An in-kind rollover transfers the actual investments (e.g., stocks, mutual funds) rather than selling them. This is only possible if:

  • Both your current custodian and new custodian allow in-kind transfers*
  • The investments are available at both institutions

If you’re performing an in-kind rollover:

  • Track the market value of the transferred investments at the time of the rollover
  • Keep this documentation with your plan records for audit and reporting purposes

*Ubiquity does not determine whether in-kind rollovers are available. Please check directly with both your current and receiving providers.

Tracking and Reporting Responsibilities

As the plan sponsor and administrator, you are responsible for maintaining accurate records and ensuring timely government filings.

What You Need to Track

  • Contributions: Pre-tax, Roth (if applicable), rollovers, and employer profit sharing/discretionary match
  • Withdrawals: All non-loan withdrawals must be reported to the IRS on Form 1099-R
  • Loans: If your plan permits loans, the outstanding loan balance must be reported on Form 5500-EZ
  • Asset Valuation: All plan assets must be valued annually; keep valuation records in case of audit

Form 1099-R

  • Required for withdrawals (excluding loans)
  • May be filed by your brokerage firm, but it's your responsibility to ensure this is done 
  • Ubiquity can help prepare this form upon request, you can complete it yourself, or, work with a tax professional

Form 5500-EZ

  • Required if total plan assets are $250,000 or more as of December 31
  • Filing deadline is July 31 of the following year, or October 15 with an approved extension
  • Ubiquity can help prepare this form upon request, or you can complete it yourself

Creditor Protection Considerations

Single(k) plans do not offer the same creditor or lawsuit protection as ERISA-covered plans (those that include common-law employees). If you want additional protection, you must:

  • Sponsor an ERISA-covered 401(k) plan that allows coverage for employees besides the owner, partner or family member.
  • Contact us if you are interested in transitioning your plan from a Single(k) to a standard 401(k)

Planning for Company Growth

If your business is growing and you plan to hire employees:

  • Contact us before they become eligible to participate in the plan
  • We can help you transition to a custom retirement plan, or a Safe Harbor plan, to stay compliant and continue offering retirement benefits

Need Help?

If you have questions about managing your Single(k) plan, email us at singlek@myubiquity.com.