Hi Pros,
I think this question may fall out of a CPA practice, but I hope I can explain to my client and help they find the right direction. If you have any suggestion or reference, please let me know.
TP is a small business with three employees: husband and wife and their adult child. It is an S corp owned by husband and wife. Now they want to set up 401K plan for the employees.
The plan sponsor is the employer (S corp); the administrator is the wife; and participants are the husband, the wife and the child; and service provider is TD Ameritrade (they prefer).
It is not a solo 401k since the adult child is one of the employees. Can they participant in a profit and sharing plan and still max each employee’s 401k? Does a profit-sharing plan allow employee contribution? If they are doing profit and sharing plan, can they handle the investment by themselves (through the wife as administrator)? They will file form 5500 through DOL website.
My client's basic concern is to minimize the administration cost.
Thank you for your help.
Thank you!