Solo 401k - Hiring Employees

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I've been doing a deep dive recently on retirement plans for a client.

The pertinent facts are that this client is an S Corp, currently the only employee is the owner employee, but the client intends to hire a full-time employee within a year or two.

The client wants to max out a SE retirement plan as much as possible and delay the full-time employee's eligibility as much as possible.

A SEP IRA is good for the latter as eligibility could be set at 3 years service. However, a SEP is disadvantageous as the client would be able to do EE elective deferrals. Also, the client does a back door Roth IRA each year, and would prefer to keep doing this. A SEP IRA would expose client to the pro rata rule.

It appears a Solo 401k is the best (or least worst) option. However, what happens after one year of service by the full-time employee? I'm assuming the client would need to convert the Solo 401k to a regular 401k and notify the full-time employee of eligibility?

Could the client keep the Solo 401k in place and just stop contributions to it? Or does the plan either need to be terminated or converted to include the full-time employee?
 

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