To qualify for the Solo 401k, you must have a qualifying business, such as an LLC or sole proprietorship without any full-time W-2 employees.

If the business that adopted the 401k plan is no longer operating, you’ll need to start a new one (it can be part time and/or on the side). Otherwise, your Solo 401k plan will need to be terminated. There is no income threshold for your qualifying business, so a low-revenue (or no revenue) year does not disqualify your business from adopting the Solo 401k.

If you shut down your business entirely, you have twelve months from the termination date to distribute the funds or roll them over to another plan.

As the document provider, the IRS looks to for the official status of your plan (active or inactive). If you need to terminate your Solo 401k, contact us via our Support center at [email protected]

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