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Updated over 7 years ago on . Most recent reply

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Raj Saxena
  • Clermont, FL
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Can a Rental Building LLC have a Individual 401k ?

Raj Saxena
  • Clermont, FL
Posted

I own & manage a Rental Office Building & have a LLC to manage all related affairs.

Can my LLC open a Individual 401k for retirement savings ??

Thanks

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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
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Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
Replied

Nisha,

you have to have business with "earned income" in order to qualify for a Solo 401k plan. Rental income is considered passive, so if that is the only income your LLC generates then it would not be an active business, just holding entity.

  • Dmitriy Fomichenko
  • (949) 228-9393
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