BACKGROUND:
I have a SEP in one company (XYZ, Inc.) with two employees
I also have another company (ABC
Comp) that was a Limited partnership, but is now a sole proprietorship.
QUESTION: Can I create a Solo 401k in my sole proprietorship and
roll the SEP IRA from the other
company into it?
ANSWER: First, in order to open a solo
401k, you cannot have any full-time W-2 employees in any of your businesses.
See following page regarding the controlled group rules. http://www.mysolo401k.net/
Only if the above is satisfied may
you open a solo 401k and then transfer your SEP IRA into it.
Thanks,
John in Virginia
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