My understanding is it's fairly open ended on when someone decides that a business has closed for good (and whether it could reopen and is simply dormant). The IRS can't really determine your intentions. And there's also no minimum earnings the business needs to have to justify having a Solo 401k plan.
The textbook answer would be to close it down if there is 100% certainty this business is dead forever and roll into an IRA. The reality is the IRS is extremely unlikely to really address it if you just kept it open for the purpose you described and just positioned it as the possibility of reopening.
The textbook answer would be to close it down if there is 100% certainty this business is dead forever and roll into an IRA. The reality is the IRS is extremely unlikely to really address it if you just kept it open for the purpose you described and just positioned it as the possibility of reopening.
Statistics: Posted by illumination — Wed Sep 03, 2025 10:08 am — Replies 1 — Views 273