Tuesday, August 19, 2014

Hire college students for self-employed S-Corp sponsored solo 401k plan




http://www.mysolo401k.net/

QUESTION: I want to hire college students to develop iPhone application for my self-employed S-Corporation. Will that conflict with my Solo 401k plan?

ANSWER: As long as the college students do not work full-time for the company (1,000 hours or more per year) then a solo 401k will not need to be converted to a full-time employer 401k and offered to them. On the other hand, if they work full-time, they may do so as long as they are 1099 contractors.  See IRS publication 560 for more information surrounding the self-employed solo 401k regulations.

ADDITIONAL INFORMATION

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