A DB plan covers a sole proprietor and his spouse. Is this plan subject to PBGC coverage?

Thanks.

Probably not. See subsection (B)(9) or (B)(13) of this section of ERISA:
http://www4.law.cornell.edu/uscode/29/1321.html

The plan would cover substantial owners (more than 10% ownership) which is one of the situations in which a DB plan is exempt from PBGC coverage.

I looked at the PBGC premium form filings and under "Who must file" it says..."The plan administrator of each single employer plan and multiemployer plan covered under section 4021 of ERISA. I began reading through that section, but it's pretty long, I figure it should answer your question................

I would say no, since you obviously qualify for 5500-EZ filing. Now, if kids enter the picture, PBGC coverage would be present unless they have ownership percentage that would qualify them as substantial owners.

As an aside, this is good that your client doesn't qualify, as they sure wouldn't be getting any "coverage" from this insurance anyway. One little gotcha in the PBGC coverage is that the maximum benefit paid by PBGC for substantial owners is subject to a 30-year phase in. (Don't mean to be going into a rant, but we just closed down a 90 life plan today that was underfunded with significant premiums paid by the client over the last few years - of course underfunding was purely due to a benefit to owners of company that was well in excess of what PBGC would guaranty, never mind waivers signed by owners, so that close to 6 digit premium payment over the last 7 years was "insuring" $0 potential hit to PBGC).