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Personal Investments • Re: Solo 401k Multiple Plans Issue (#001, #002)

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I am not married to this person. However we are 50/50 owners of the business. No employees have been hired. We just do consulting as self employed. We specialize in complementary niches so we joined efforts.

That is very foreboding!
Before anyone jumps on your for having multiple participants in a "solo" plan; that part is not a problem, you can have multiple non-spouse participants in a solo 401k plan if they are owners and not employees. (Refs: viewtopic.php?t=420598, https://www.irafinancialgroup.com/learn ... ember-llc/, https://www.mysolo401k.net/solo-401k-fo ... er-s-corp/.) Also Etrade's page mentions this under "Can an Individual 401(k) be opened if a partnership consists of only self-employed partners?", but suggests separate plans for each partner.

I don't know if you're doing it correctly (I'm not familiar with such plans), but I mention this just in case someone tells you you can't do that at all.
I have started to look for a lawyer to help me with this, but since I am a small business finding ones that will work with someone of my scale has been difficult.
Another option is to use a third-party administrator (TPA) to handle this stuff for you (one such service is Employee Fiduciary, but there are also individual people that can do this). I've never done this, but I thought if you transfer your plan to someone like that, they may help you sort out problems with the plan as part of migrating to their service. If you don't want to keep paying them, you could just transfer away afterwards. Using a service like mysolo401k might also help you with this, but with those services you're still the administrator so you still have to handle all this stuff afterwards.

I don't know if they'll just say they don't want to touch such an obviously-noncompliant plan with a ten foot pole, but maybe it doesn't hurt to ask?

Statistics: Posted by numberman — Mon Nov 04, 2024 12:11 am



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