Once your business employs a W-2 employee who works 1,000 hours or more during the year, you will no longer qualify for a solo 401(k) plan.
Following are the typical options once your business grows and employs full-time W-2 employees.
One option is to transfer the solo 401(k) to a self-directed IRA.
See the following:
A second option is to invest the solo 401k in an LLC where the solo 401k is the sole member and then transfer the solo 401k owned LLC in-kind to a self-directed IRA resulting in an IRA LLC.
See the following:
A third option is to convert/restate the solo 401k to a full-time employer 401(k) plan and offer the plan to the rest of the W-2 employees in the business. We do not offer full-time employer 401k plans. which we do not offer. Most full-time employer 401(k) providers do not allow for investing in alternative investments such as real estate so this may not be the best option.
See the following for more information:
