Posted by Natalie-VA on August 05, 2005 at 13:20:29:
Susan,
I’m not sure what he’s talking about with going through a trust. I simply called around to different companies (Vanguard, Fidelity, Charles Schwabb, etc.) and asked if they did 401(k) plans. We ended up putting our profit sharing at Vanguard and our 401(k) at Fidelity. They supply pre-printed documents to use as your “plan documents” and my CPA assisted me in filling them out. You should be able to get more info on any of those companies’ websites. I definitely needed my CPA’s assistance in filling out the docs, but it was not what I would call complex.
Hello,
I’m getting ready to set-up a self-directed 401k for my S-corp “Lonnie” business, and read in Hugh Bromma’s 401k book that you might want to get a separate EIN number from the IRS for the 401k plan. Looking at the SS-4 form, I don’t see it mention 401k’s as an entity that might need an EIN. What do you think?
Also, If I get an EIN for my 401k, what would happen on the state level (Virginia)? Would they consider it a new business and require new fees and other garbage like they did for my S-corp?
Posted by Natalie-VA on June 10, 2005 at 07:22:42:
Hi Pat,
Where in Virginia are you?
I also have an S-corp and we set up both profit sharing and 401k plans. We set up the profit sharing first with Vanguard. My CPA filled out the SS-4 for this. In box 8a, he checked “Other” and wrote in “retirement plan”. When we later set up a 401k with Fidelity, we did not request another EIN. I’m not sure why. As I look through both plan documents, I don’t see where we’ve used that EIN anywhere.
I do recall my CPA saying something about not filing any annual forms with the IRS until the plan has over 100k in it. Maybe that’s when the EIN is used. Maybe someone can help clarify this.
How did you find out how to set up your 401k for your s-corp? My financial planner, whom I plan on getting rid of, tells me it is very complex and that I have to go through a trust. Would you share your experience with me?