Multiple Employer Plans Allowed?
New client comes to me with a Solo 401k in a sole proprietorship. Now operates a corporate entity in which he has a SEP-IRA for he and spouse employee in the corporation. He has probably been making 401k contributions to the sole prop’s 401k plan based on corporate earnings. Need to one new corporate 401k plan and trustee transfer old 401k plan from sole prop to new plan. Can or should they retain the SEP-IRA Ffor the corporation? Or can the SEP-IRA BE ROLLED OVER TO THE new 401k plan and close the SEP-IRAs? Or do SEP-IRAs just need to be frozen or rolled into Trad IRA? Thanks.
Permalink Submitted by Mike Flanders on Tue, 2016-01-19 00:07
New client comes to me with a Solo 401k in a sole proprietorship. Now operates a corporate entity in which he has a SEP-IRA for he and spouse employee in the corporation. He has probably been making 401k contributions to the sole prop’s 401k plan based on corporate earnings. Need to one new corporate 401k plan and trustee transfer old 401k plan from sole prop to new plan. Can or should they retain the SEP-IRA Ffor the corporation? Or can the SEP-IRA BE ROLLED OVER TO THE new 401k plan and close the SEP-IRAs? Or do SEP-IRAs just need to be frozen or rolled into Trad IRA? Thanks.