### Question
How does the law define one-participant retirement plan?


### Answer
Under *29 U.S.C. § 1021*, **one-participant retirement plan** is defined as:

> a retirement plan that—


(i) on the first day of the plan year—


(I) covered only one individual (or the individual and the individual's spouse) and the individual (or the individual and the individual's spouse) owned 100 percent of the plan sponsor (whether or not incorporated), or


(II) covered only one or more partners (or partners and their spouses) in the plan sponsor, and


  

(ii) does not cover a business that leases employees

#### Citation:
  - *29 U.S.C. § 1021*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 1-reporting and disclosure**

