can 1099 income contribution be added to S-corp plan?

Hello,

Some background:

I had a sole-prop some time back and had a self-employed 401k plan with Fidelity with EIN of sole-prop

Then I created a s-corp and just used the same plan - changed EIN to S-corp, Name to a generic name - MKK-Plan. 

All good, no issues. I was thinking of shutting down the sole-prop but never did. 

Now, one of my clients (for whom I do most of my work) has changed their policy and want me to handle task based on my SSN (1099). Does not want to use EIN of Sole-Prop.

I'd asked earlier this question with the understanding that they could use EIN of Sole Prop and found that I could add the EIN of Sole-Prop to my current MKK-Plan. But client wants to pay under SSN only.

Can I do the same with my SSN?

Fidelity form asks for:

The term “Employer” includes the following Affiliated Employers covered by the Plan:, Should I add the following

MKK - SSN

Thanks,

I don't think having an EIN for your sole proprietorship prevents you from applying the earnings paid on your 1099 under your SSN.  Your Schedule C will have lines for both your SSN and EIN.  Which would mean you have no other steps to take regarding the plan sponsorship.

Previously when I did 1099 work, I'd give my DBA name - say 'ABC' and EIN of this DBA.

i would then get a 1099 based on that DBA Name and EIN.

Now, I'll be getting a 1099 under MKK with SSN.

So, on Sch-C, yes I can put my SSN but if I add EIN of ABC then will there be a problem if 1099 is directly under MKK and not ABC (the DBA name)?

15 hours ago, mkaufman said:

Now, one of my clients (for whom I do most of my work) has changed their policy and want me to handle task based on my SSN (1099). Does not want to use EIN of Sole-Prop.

What is their reason? If you are not their employee, they should pay your business- whether that business is a sole proprietorship, corporation etc.  You complete the W-9 and they pay based on the information provided on the W-9. Tell them you are registered with the IRS as an S-Corp, and therefore payment for work should be made to the S-Corp (unless your tax advisor says otherwise. Check with you tax advisor as this is a tax issue. ).

2 hours ago, Appleby said:

Check with your tax advisor as this is a tax issue.

Check with your attorney also.

On 12/23/2021 at 5:46 AM, Appleby said:

What is their reason? If you are not their employee, they should pay your business- whether that business is a sole proprietorship, corporation etc.  You complete the W-9 and they pay based on the information provided on the W-9. Tell them you are registered with the IRS as an S-Corp, and therefore payment for work should be made to the S-Corp (unless your tax advisor says otherwise. Check with you tax advisor as this is a tax issue. ).

Apparently, they only want individuals on 1099 not other entities. This is per the advice they get from their 'experts'.

I've found it easier to work with clients needs than pushing them to work with mine. Did try to get them to keep status-quo but no dice. Can't afford to let go of client so i will need to adjust to their needs.