Guest yanks10952 Posted October 10, 2013 Share Posted October 10, 2013 I have a llc with 4 members. 2 of the members are trusts. I want to open a self employed 401k. the are no other employees. will the trust be able to participate? will it be an issue if they cannot? any help would be greatly appreciated. Link to comment Share on other sites More sharing options...
rcline46 Posted October 10, 2013 Share Posted October 10, 2013 A trust is not an employee. However, as a member, the LLC must create the plan. You cannot create your own plan as self employed. Link to comment Share on other sites More sharing options...
Guest yanks10952 Posted October 10, 2013 Share Posted October 10, 2013 so if the llc sets up the plan can only the two regular llc members contribute and the two trust members cannot ? Link to comment Share on other sites More sharing options...
MoJo Posted October 10, 2013 Share Posted October 10, 2013 What rcline said: A trust is not an employee. "Employee benefit Plans" benefit employees. Members of LLC's can actually only participate in a plan to the extent they are employed by the entity they own. While a trust may own an LLC, a trust cannot be employed by one. Link to comment Share on other sites More sharing options...
QDROphile Posted October 10, 2013 Share Posted October 10, 2013 A trust can be employed to commit fraud. :-) MoJo and WDIK 2 Link to comment Share on other sites More sharing options...
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