Seeking advice on my current situation.
I have three solo 401k plans from from prior independent contractor jobs: plans A, B, and C (each are under different LLC's). I am now starting a new company (that will have employees besides myself) so I want to start a new 401k plan ... plan D (a new LLC). This will be the only plan that I contribute to henceforth. The 401k administrator company that I contacted said I must rollover my plans A B and C into IRAs. However, I don't really want to do that, just for simplicity.
This 401k company rep said: "The current set up with your existing Solo K’s and the intended new 401k would create an IRS “Controlled Group” of K plans. This means: Common ownership between the 3 Solo K’s and the new 401k requires that they all be aggregated for rules and testing. So all under one ownership umbrella (you)."
Does anyone out there know if this is accurate? If not, what's the best approach to my situation?
I have three solo 401k plans from from prior independent contractor jobs: plans A, B, and C (each are under different LLC's). I am now starting a new company (that will have employees besides myself) so I want to start a new 401k plan ... plan D (a new LLC). This will be the only plan that I contribute to henceforth. The 401k administrator company that I contacted said I must rollover my plans A B and C into IRAs. However, I don't really want to do that, just for simplicity.
This 401k company rep said: "The current set up with your existing Solo K’s and the intended new 401k would create an IRS “Controlled Group” of K plans. This means: Common ownership between the 3 Solo K’s and the new 401k requires that they all be aggregated for rules and testing. So all under one ownership umbrella (you)."
Does anyone out there know if this is accurate? If not, what's the best approach to my situation?
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