Client has 3 partnerships: One partnership has a guarantee payment and makes money, the other two actually lose money and offset the gain. Client wants to set up a solo 401k plan for him and his wife in the "money making partnership" and defer the max allowed. Is this possible to do so if he shows no income because of offset losses in the two other partnerships?
Also with the new Temp Regs intended to halt the practice of some partnerships treating partners as employees is a solo 401K even possible? How can one defer any income if its not employee income and just a distribution
I can find NO definitive answers anywhere
Any direction would be most helpful
