SIMPLE IRA/SOLO 401(K)

Sir/Madam,

Entity has a retirement plan (SIMPLE IRA). Can the owner/employees of the entity receive director’s fees from the entity and set up a SEP or solo 401(k) plan for the Schedule C income from the director’s fees? Or, would the director’s fees not qualify since from the same entity from which the owner/employees already have a retirement plan?

Thanks in advance,

Chris



Chris, the latter. The SIMPLE IRA “exclusive plan requirement” would apply.



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