solo 401(k) question

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northstar22
Posts: 69
Joined: Mon Jul 16, 2012 8:30 pm

solo 401(k) question

Post by northstar22 » Tue Jan 23, 2018 4:05 pm

I have a solo 401(k) with Fidelity that I opened a few years ago. I was doing a small amount of side work (sole proprietor), but mostly opened it to accept rollovers rather than an IRA so I could do backdoor Roth. I made a contribution for 1 year, did the rollover, and have made no deposits in about 3 years. The money remains in that solo 401(k). That side business has not been active in about 3 years.

I am now in the process of starting a (completely different, with different EIN) new side job (sole proprietor) which I hope will generate enough income to make substantial solo 401(k) contributions. My question is if that happens, can I make contributions to the existing solo 401(k), or do I have to open another account? Thanks for any help.

TwstdSista
Posts: 987
Joined: Thu Nov 16, 2017 4:03 am

Re: solo 401(k) question

Post by TwstdSista » Tue Jan 23, 2018 4:08 pm

I think you can use the same solo 401k. But you need to amend your plan documents to include the new business. (I remember something about multiple businesses when opening my i401k with Fidelity earlier this month.)

Spirit Rider
Posts: 9173
Joined: Fri Mar 02, 2007 2:39 pm

Re: solo 401(k) question

Post by Spirit Rider » Tue Jan 23, 2018 4:28 pm

TwstdSista: Is correct. Amend the plan by submitting an additional Self-Employed 401(k) Adoption Agreement. Add the new business as an "Affiliated Employer" in Section 2B.

There might have been no need to get a new EIN. The IRS prefers sole proprietors to use one EIN unless they are filing other business tax forms such as required if you have employees under the new business and the business activity is substantially different.

northstar22
Posts: 69
Joined: Mon Jul 16, 2012 8:30 pm

Re: solo 401(k) question

Post by northstar22 » Tue Jan 23, 2018 4:31 pm

Spirit Rider wrote:
Tue Jan 23, 2018 4:28 pm
TwstdSista: Is correct. Amend the plan by submitting an additional Self-Employed 401(k) Adoption Agreement. Add the new business as an "Affiliated Employer" in Section 2B.

There might have been no need to get a new EIN. The IRS prefers sole proprietors to use one EIN unless they are filing other business tax forms such as required if you have employees under the new business and the business activity is substantially different.
Thanks to you both. I actually haven't gotten around to applying for a new EIN, so it sounds like I'll just skip that, use the old EIN, and there should be no issues.

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