I have some questions regarding solo 401k:
1. If your spouse performs services and is compensated from the business, this person can participate in the same Solo 401(k) plan.
In this case, does my spouse need to have stock in my company ?
ANSWER: While the spouse is not required to be an owner in the self-employed business sponsoring the solo 401k plan, he or she is required to also work (perform material services) under the business in order to participant in the plan including transferring IRAs or former employer funds to the solo 401k plan.
2. If I have 3 stockholders in my company, can all stockholders participate in the solo 401(k) plan (Assuming that all work and are compensated from my business.
ANSWER: A solo 401k is for owner-only employees. Therefore, if the other stockholders are at least 3% owners over 21 years old, perform material services under the business they can also participant in the Solo 401k Plan.
1. If your spouse performs services and is compensated from the business, this person can participate in the same Solo 401(k) plan.
In this case, does my spouse need to have stock in my company ?
ANSWER: While the spouse is not required to be an owner in the self-employed business sponsoring the solo 401k plan, he or she is required to also work (perform material services) under the business in order to participant in the plan including transferring IRAs or former employer funds to the solo 401k plan.
2. If I have 3 stockholders in my company, can all stockholders participate in the solo 401(k) plan (Assuming that all work and are compensated from my business.
ANSWER: A solo 401k is for owner-only employees. Therefore, if the other stockholders are at least 3% owners over 21 years old, perform material services under the business they can also participant in the Solo 401k Plan.
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