pj20

Thank you! This makes complete sense & what I was inclined to do. 100% going to add a SH provision. Now my main hurdle is that the owner is self-employed so I need to make sure that he has enough income to support what he's already done for 2024 + the cost of the employee.

I have a potential client approach me with the following situation: Established a Solo 401k in 2021 (he was only employee) & contributed for 2021, 2022. He hired a full-time employee in the beginning of 2023. The eligibility requirements (if relevant) were non-existent in the Solo 401k document (immediate entry). For 2023, contributions were made & deducted for the owner, nothing for the EE. For 2024, contributions have been made already for the owner. What are his options for both fixing 2023 & making sure that the contributions made for 2024 are allowable? If I open a Qualified Plan effective for 2024, can he make the contributions for the EE covering both years? Essentially, is this something that falls under the ability to "self-correct"? Thank you

A 2/3 owner in a Salon also has a Sole-Proprietorship, in which she pays herself for services performed in the Salon. She maintains a Solo-401(k) for her Sole-P, which she maxes out. Is this an Affiliated Service Group, or does a Salon not qualify under the definition of a Service Organization? Thank you