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Self-employed 401k FAQ – What happens to my Solo 401k if my S-corp closes down?
QUESTION:
What happens to a Solo401K if the corporate entity closes down? Does the solo401K continue on independently, or does it need to be liquidated?
RESPONSE:
You would need to be self-employed under another entity type such as a sole proprietorship, for example. If not, the solo 401k plan would need to be terminated. If you are self-employed under a new entity, we would need to update the existing solo 401k plan to reflect the new entity type. If you are no longer self-employed, the solo 401k plan would need to be transferred to an IRA and then the solo 401k plan would be closed with the IRS.
