3 software developers worked 10 years as independent contractors for “Business Software Company” that was 100% owned by “Investment company”. There were no Employees of Business Software company or “Investment company”. In 2022 the 3 developers, as a new partnership “Partnership” purchased 75% ownership of Business Software Company, each partner now owns 25% and the remaining 25% still owned by Investment Company.
The Software company appears to be unrelated to Investment Company.
The 3 independent contractors may/may not have had individual 401(k) Plan (we were told one possibly has one).
One of the partners of the new partnership came to us looking to start a new plan.
Should we be concerned about the successor plan rule?
Thanks in advance!
