Solo 401k eligibility requires 2 things:
- Presence of self employment activity – This can be as a sole proprietor or more formally organized as a Corporation, Partnership, or LLC. It’s okay to also be employed elsewhere even if that is your full time job and you participate in a 401k there.
- Absence of full time employees – To meet this requirement you cannot have full time employees at a business that you own. Part time employees (those who work under 1000 hours per year) and independent contractors (those who receive a 1099 rather than a W-2 at the end of the year) are okay to employ.
If you meet this requirement, you are likely to qualify for a Solo 401k. For a free consultation, call us at 877-SOLO-401K.
