QUESTION:
I have a small business that’s setup currently as a LLC. I brought on a partner and plan on changing over to a multi-member LLC this year. I have a 401k with my previous employer and would like to start our own 401k for this business. We don’t have any employees outside ourselves and a few 1099 contractors. I need to find something that is easy to manage and has a loan provision. Do you have something like that available?
ANSWER:
Our solo 401k plan does allow for participant loans, and rollovers from previous employer 401k plans. You and your partner can participate in the same solo 401k plan, as a the self-directed solo 401k would be sponsored by the LLC. It will be one plan with two participant accounts for you and your partner to separately track your respective funds under the plan. In sum, the solo 401k would be sponsored by the LLC not each partner.
