Solo 401k Question Answered – Can I set up a solo 401k if my business is owned by my living trust?
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Solo 401k Question:
Can I set up a Solo 401k if my self-employed business is owned by a trust set up by my wife and me?
RESPONSE:
Ultimately, if a self-employed individual owns their business for estate planning purposes through a trust, such a person may still open a Solo 401k for their business provided that such person is reporting earned self-employment income (e.g. file a schedule C, or receive a W-2 wage from a self-employed business taxed as an S-corporation) and further provided that there are no non-owner/non-spouse full-time w-2 employees working for any business owned by such person or a spouse (if any).
