As fellow small business owners, at Solo401k.com we understand business needs can change over time. Business structures can change, too. You might start with a sole proprietorship and then form an LLC. Your Solo 401k “adopting employer” should change when your business changes. If you have multiple businesses, you will be able to maximize your 401k contributions and tax benefits by using the business that has the most self-employment profit to sponsor your Solo 401k.
If you need to change your adopting employer (aka 401k sponsor), send us a message that includes the following information for the new business:
Business structure: (e.g. LLC, S-corp, sole proprietorship, etc)
Business start date:
State of formation/incorporation:
Brief description of business activity:
Fiscal year end: (typically December)
Does the business have any non-spouse partners besides you? (yes or no)
Does the business have any full-time W2 employees besides you or your spouse? (yes or no)
We will update the adopting employer and redraw your plan documents for you in approximately one business day.
You do not need a new Trust Name or Trust Tax ID number if you change the adopting employer. Once your documents are up to date, you’re all set!