Rocket Dollar directs all of its clients to get an EIN
EIN = Employer Identification Number
SSN = Social Security Number
Some sole proprietors do not use an EIN and run their businesses under their personal SSNs. However, to establish a Solo 401(k), you will need an EIN for your business. The EIN must be listed on the adoption agreement.
It is essential to keep your retirement plan dollars separated from your personal dollars.
If you are a sole proprietor, and you work under your SSN and do not have an EIN, we will assist you in creating one right after you purchase a Solo 401(k). Please let our support team know by contacting them after purchasing an account from the support options in your dashboard. Our team is aware of methods to get a new EIN number quickly and efficiently.
Once your plan reaches $250,000 in assets, you will be required to file Form 5500 with the IRS, which asks for the plan sponsor's EIN. Prepping for this ahead of time will avoid a potential audit.