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Guest yanks10952

trust as owner in 401k

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Guest yanks10952

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.

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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.

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Guest yanks10952

so if the llc sets up the plan can only the two regular llc members contribute and the two trust members cannot ?

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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.

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