Solo 401k with a minor employee - Spidell

Solo 401k with a minor employee

Log in to Post

Message Board Solo 401k with a minor employee

  • This topic has 3 replies, 2 voices, and was last updated 1 week, 2 days ago by Lynn Freer.
Viewing 3 reply threads
  • Author
    Posts
    • #273736
      Tams Lai
      Participant

      If you have a Solo 401k and want to start payroll for a minor (anyone under 21), will that automatically disqualify the Solo 401k plan? My understanding is that the minimum age for 401k is 21 years old so the minor cannot participate as an employee.

    • #274004
      Lynn Freer
      Participant

      A 401(k) is required to cover employees at age 21 and can have younger employees but not sure about a solo (k) – I’m assuming the minor is the only employee/owner. Suggest you speak to a plan administrator. I’m guessing the plans with mutual funds may not provide this option.

    • #274041
      Tams Lai
      Participant

      Sorry, I wasn’t as clear.

      The parent is currently participating in the Solo 401k. Will adding a minor employee on payroll disqualify the plan despite the minor not participating in the plan and not qualifying?

    • #274060
      Lynn Freer
      Participant

      It won’t be a solo 401k if the son is on but you will still probably need to make sure the company will allow it

Viewing 3 reply threads