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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