
ANSWER: Regarding keeping the account open after you cease self-employment, I don't fully agree with the competing firm’s comments regarding keeping the solo 401k open, but it is ultimately your decision and thus you will bear the risk in the event of a challenge resulting from an IRS audit. This is especially true if self-employment ceases within a year after the solo 401k was opened as it will come across as simply opening a solo 401k for consolidating retirement accounts, which is not what a solo 401k is intended for. Instead, IRAs are intended to consolidate retirement funds even though retirement funds may also be transferred to solo 401k plans.
In sum, we are very conservative when it comes to the solo 401k law and, therefore, highly recommend that you not open a solo 401k if you plan/know that you will cease self-employment in the first two years after the account has been opened