### Question
What does one-participant retirement plan mean?


### Answer
**One-participant retirement plan** has the following meaning in *26 U.S.C. § 401*:

> a retirement plan that—


(I) on the first day of the plan year covered only one individual (or the individual and the individual's spouse) and the individual owned 100 percent of the plan sponsor (whether or not incorporated), or covered only one or more partners (or partners and their spouses) in the plan sponsor,


(II) meets the minimum coverage requirements of section 410(b) without being combined with any other plan of the business that covers the employees of the business,


(III) does not provide benefits to anyone except the individual (and the individual's spouse) or the partners (and their spouses),


(IV) does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control, and


(V) does not cover a business that uses the services of leased employees (within the meaning of section 414(n))

#### Citation:
  - *26 U.S.C. § 401*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

