Hi Andrew,

Thanks for your reply.

About my solo401K, I have a consulting income, and in the meantime I’m a co-owner of a C-Corp(no salary has been drawn from the C-corp yet.) I would like to open a solo 401K for my consultant work, not the C-Corp.
Is there a control group issue I should consider? If so what's the best way to get around with it. "

Thanks a lot,
M.

Zip Code: chuihuaer@yahoo.com

My understanding is that if multiple businesses share common ownership, then the benefits offered to the owners and staff need to be consistant across the board. Otherwise, everyone who owns a business with employees would set up a separate entity, be the only employee in that entity, and offer great benefits through that entity.

So if you have employees in your corporation, you probably can't exclude them from any retirement plan that you set up for your Schedule C.

The retirement plan rules are very complicated, as well as very specific, so I recommend that you run this question by the retirement specialist who is helping you set up your Solo 401k.

Zip Code: aschwartz@mdtaxes.com