MyVirtualCPA please answer my question,
My ultimate goal is to save more than regular 401K plan, reduce business tax liability and save more for retirement as a business owner.
I work as in independent contractor and have established an S-Corp and own a 100% stake in it. When I setup my company my CPA suggested we will open a 401K and SEP-IRA
plan to save $$$ for retirement as I had no plans to hire people.
1. I am planning to hire employees it seems SEP-IRA is not a best option. With SEP-IRA limitations of having to contribute equally for all employees, can I have a individual 401K and employee 401K and contribute to both?
2. Can individual-401K be transferred into SEP-IRA and vice versa?
3. one of my friend suggested that we can open another company under which all employees will be recruited and they will have the regular 401K plan. The original company will only have me as its employer/employee with SEP-IRA and 401K plan? The original company will do all the contracts with the new company so payrolls for employees can be run thru the new company. My understanding is IRS might treat this as controlling issue as I would be owning more than 80% stake for both companies. What would be a prudent approach to adopt?
4. Indivual 401K plans "For sole proprietors who want to make the highest contribution possible (for themselves and a working spouse)". Does the working spouse need to be employed with a same company or she can work with some other company and have her own 401K?
5. Currently I have a 401K from my old employer which I plan to transfer to
a 401K account. Which 401K should I transfer it to individual or regular
6. On a 401K plan I understand one can take a loan to the lesser of $50,000 or 50% of the balance, assuming I transfer to regular 401K account, can I transfer it to rollover IRA account when my 401K balance reaches above $100,000, thru an existing business?