Hello-

Client is currently an LLC taxed as sole prop on Schedule C. Other than the owner, there was one non family member seasonal employee. Worked at most 250hrs over 2.5mths – about $3K gross for year.

1. Does this seasonal employee keep the owner from being able to set up a Solo 401k for the year?
2. If not, is the deadline 4/15 the deadline to set up and fund the Solo 401k for 2024?
3. The client intends to make a S Corp election starting 1/1/25 for the business (Schedule C in 2024 and S Corp return in 2025). Does this change the deadline for setting up the Solo 401k?

Thank you!