Solo 401k - same EIN used for nanny? [solved]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills

Solo 401k - same EIN used for nanny? [solved]

Postby tj-longterm » Thu Jun 27, 2013 10:04 pm

I'm considering contributing to a profit-sharing individual 401k for some consulting work I've been doing, and I'm required to provide an EIN. I don't have anything incorporated (most of the work I'm doing is subcontracting and low-risk so I haven't spend the time to do this), so I figured I could do this as a sole proprietor. But, the IRS only gives out one EIN per person. I currently use my EIN as an employer for our nanny.

Are there any problems with creating a profit-sharing individual 401k using this EIN? Or have I messed things up and need to incorporate (and only use profits made after incorporation)?

Update: Apparently I can actually get multiple EINs. Sorry for the confusion.
Last edited by tj-longterm on Fri Jun 28, 2013 7:28 am, edited 1 time in total.
tj-longterm
 
Posts: 479
Joined: Tue Apr 10, 2007 10:10 am

Re: Solo 401k - same EIN used for nanny?

Postby JamesSFO » Thu Jun 27, 2013 10:37 pm

Unsure, couple of thoughts.

Is the nanny a W-2 employee of the EIN you want to open the I401K under? If so, you are out of luck since that company has employees.

Also, could you use your personal social security # as the owner of the plan?
User avatar
JamesSFO
 
Posts: 2252
Joined: Thu Apr 26, 2012 10:16 pm

Re: Solo 401k - same EIN used for nanny?

Postby JamesSFO » Thu Jun 27, 2013 10:41 pm

Also what makes you think you can only get 1 EIN? I don't see anything at IRS.gov about this, just a limit of one per day...
User avatar
JamesSFO
 
Posts: 2252
Joined: Thu Apr 26, 2012 10:16 pm

Re: Solo 401k - same EIN used for nanny?

Postby vtjon » Thu Jun 27, 2013 11:35 pm

I would suspect that the Solo 401K EIN should match your Schedule C. In this case, it's likely your SSN.
vtjon
 
Posts: 57
Joined: Fri Jul 20, 2012 12:53 pm

Re: Solo 401k - same EIN used for nanny?

Postby tj-longterm » Fri Jun 28, 2013 7:28 am

vtjon wrote:I would suspect that the Solo 401K EIN should match your Schedule C. In this case, it's likely your SSN.

JamesSFO wrote:Also, could you use your personal social security # as the owner of the plan?


Vanguard explicitly says that SSNs aren't allowed.

JamesSFO wrote:Is the nanny a W-2 employee of the EIN you want to open the I401K under? If so, you are out of luck since that company has employees.

JamesSFO wrote:Also what makes you think you can only get 1 EIN? I don't see anything at IRS.gov about this, just a limit of one per day...


Somehow I misunderstood and also misread a separate article. I can, in fact, get another EIN.

So... case closed... Thanks JamesSFO
tj-longterm
 
Posts: 479
Joined: Tue Apr 10, 2007 10:10 am

Re: Solo 401k - same EIN used for nanny?

Postby JamesSFO » Fri Jun 28, 2013 2:49 pm

tj-longterm wrote:Somehow I misunderstood and also misread a separate article. I can, in fact, get another EIN.

So... case closed... Thanks JamesSFO


Happy to have helped.
User avatar
JamesSFO
 
Posts: 2252
Joined: Thu Apr 26, 2012 10:16 pm

Re: Solo 401k - same EIN used for nanny? [solved]

Postby leonard » Fri Jun 28, 2013 7:09 pm

It's reasonably cheap to incorporate as an LLC and insure your business.

Most any consulting job that you can make a reasonably good amount of money has some risk should anything go wrong. It isn't worth putting your personal assets at risk and relatively cheap to mitigate that risk.
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
leonard
 
Posts: 4450
Joined: Wed Feb 21, 2007 11:56 am


Return to Personal Finance (Not Investing)

Who is online

Users browsing this forum: Bing [Bot], Yahoo [Bot] and 15 guests