Help with Husband’s Solo 401K
Hello my husband works full time for an employer but consult on the side for which he gets a 1099 form for the past 2 years and we just file our taxes jointly on a 1040 form. He wants to now open a solo 401k plan to invest the extra money. He initially got an EIN specifically for the solo 401K from the IRS but when he spoke with another IRS agent yesterday, he stated that my husband needed an EIN as a sole proprietor and went ahead to issue him another. So he now has 2 EIN #.
My questions are:
1. Which EIN # should he use to open his solo 401K?
2. Does having 2 EIN # complicate our tax filing issues?
Please help us out. Thanks
Permalink Submitted by mk foss on Mon, 2013-12-02 19:39
The business needs an EIN if he has employees and an EIN is used to file the Form 5500-EZ forms for the 401k. The Form 5500-EZ isn’t required until there is $250k or more in the plan. Having two EINs should not complicate your tax filing issues. Your unlikely to need either of them for a while. IRS periodicaly sends letters asking about return filings for EINs but it doesn’t happen often and is not a difficult situation to explain away.