I have a number of 401k questions
2 of us own an LLC together. It is taxed as a C Corp so we each receive W2 wages.
My partner has a Solo 401k.
- Do I have to included in that 401k? Can I even be included in that 401k?
- Do I have to get a separate 401k if I want one? (I could get this from you right?)
- Do I have to do anything to NOT be included in their 401k?
- Can they have a 401k and me not be included and me not get a 401k plan for myself?
- Does this violate any “testing” requirements of their Solo 401k?
The solo 401k plan is sponsored by the LLC, so both owner-employees can choose to participate in the solo 401k plan. If one owner employee does not participate, the other participating owner employee can still make both employee and employer contributions. Lastly, testing does not apply to owner-only plans as solo 401k plans. VISIT HERE to learn more about the solo 401k eligibility requirements.