If I have employees, can I open a Solo 401k for my other business with no employees?

July 17, 2023 | By George Blower

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Solo 401k FAQ – If I have employees, can I open a Solo 401k for my other business with no employees?

QUESTION:

I am a single-member LLC taxed as an S-corp and have employees, LLC A. Would I be able to use a solo 401k plan if I create a second LLC, LLC B, and transfer ownership of LLC A to LLC B and open the plan through LLC B?

RESPONSE:

No. In order to set up a Solo 401k, one must be self-employed with no full-time non-owner/non-spouse employees working for any business owned by you (or a spouse, if any).

Tags: 2nd business, entrepreneur, Individual 401k, self employed 401k, self-directed 401k, Solo 401k, solopreneur

About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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