Can a Consultant Paid Via 1099 Start a 401(k)

We have a consultant who came to us who wanted to start a 401(k).  Technically he doesn't have a company, it's just him getting 1099 income for consulting.  Can someone under that circumstance start a solo 401(k) Plan and file it under their SSN?  For some reason they don't want to do a SEP (haven't gotten a straight answer as to why).

Thanks!

Sure, but he'll want an EIN for the venture rather than using the SSN.  As for why, you get the extra 20,500 in deferrals on top of the same employer 25% limitation a SEP would have.

5 minutes ago, Bri said:

Sure, but he'll want an EIN for the venture rather than using the SSN.  As for why, you get the extra 20,500 in deferrals on top of the same employer 25% limitation a SEP would have.

Thanks!

Since it's an EZ and he's under $250k in assets, there is no Form 5500-EZ requirement for now correct?  I just wanted to make sure I had that correct as well

That should be the case, presuming nothing behind the scenes to interfere with the usual exceptions.

1 minute ago, Bri said:

That should be the case, presuming nothing behind the scenes to interfere with the usual exceptions.

Nope, it's a 1-person plan.  He does own a stake in another company, but him and his partner own around 50% of it so there's no Control Group issue.  Assets are only around $45k, so that works.

Thank you!