Law firm with 401-k splitting

[KevinMc]

I have a plan where the two owner attorneys are dissolving their practice and setting up separate firms.  They currently have a safe harbor 401-k Plan.  One of the attorneys has told me she wants to maximize her contributions and she will be the only employee in her new firm (and possibly her husband) but she will have contract labor.  She has asked me if a SEPP IRA would be more practical than a 401-k and is she could roll the existing 401-k into the SEPP IRA if in fact that is what she establishes.  Is the maximum contribution to a SEPP IRA $54,000 like a 401-k/Profit Sharing Plan?  Would she be able to exclude the contract labor?  Could she transfer her 401-k account into a newly established SEPP?  Is a Plan Document and an annual 5500 required for a SEPP IRA?  Would like some opinions on what would make the most sense.......any response to these questions or input would be greatly appreciated.

[ETA Consulting LLC]

Would she be able to exclude contract labor is like asking would she be able to exclude someone who is not her employee.  So, that answer is; she must exclude.  Just be sure that she's not mis-classifying common law employees as independent contractors.

The 415 Dollar limit for SEP is the same as the 415 Dollar Limit for 401(k).  The 415 percentage limit for SEPs remain as 25% of Compensation, but that's no biggie since it coincides with the deductibility limit.

You may roll over distributions from a 401(k) plan into a SEP.

There is no 5500 reporting requirement for SEPs.

Good Luck!