ForumsSolo 401kNon-spouse Owners with a Spouse Employee

Forums Solo 401k Non-spouse Owners with a Spouse Employee

  • Non-spouse Owners with a Spouse Employee

    1 Reply
  • Top ForumsSolo 401k

    Andrew Barninger

    December 2, 2021 at 11:20 am

    I hope someone can answer this question. I’ve found some conflicting information.

    The business is an S-Corp with two non-spouse owners and one full-time employee who is a spouse of an owner. Can this business have a Solo 401(k)?

    I’ve heard yes and no. Some resources say that the owners must also be spouses but I’m not sure that’s true.

    Any clarity would be greatly appreciated. Thanks!

    Andrew Barninger
  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    December 2, 2021 at 12:53 pm

    The issue is not whether a solo 401k can be opened, as yes the S-Corp can sponsor a solo 401k where the owners and their spouses who are not owners in business but work for the business as W-2 employees can participate in the same solo 401k plan.

    The issue is whether or not a Form 5500-ez can be filed vs a Form 5500-SF.

    What is more, the solo 401k would not be subject to discrimination or top heavy testing since only owners and their spouses work for the business.

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