Wednesday, April 10, 2013

Convert Solo 401k to a full-time employer 401k



QUESTION 1: If I bring on other people as owners of my company, will they be able to use the Solo 401K that my company is sponsoring?

ANSWER: Only a maximum of two business partners may adopt a solo 401k. Therefore, once your business exceeds the 2 person limit, the solo 401k will need to be converted to a traditional 401k (a 401k for a business with more than two business partners/employees). We offer traditional 401k plans in addition to solo 401k plans, so once your business reaches this milestone let us know and we will convert your solo 401k plan to a traditional 401k in a matter of a few days.

QUESTION 2: Will I be able to take the Credit for Small Employer Pension Plan Startup Costs (form 8881)?

ASNSWER: Visit following blog from our website to learn about the plan startup credit and Form 8881.

Thanks!
John

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