I'm self employed and I would like to open a SE 401(k).
As a bit of background, for most of the year it is just me but around the holidays I hire a PT employee to help with increased order volume, usually a college student from one of the local universities in my area. The government mandates that I am not required to offer a 401(k) to an employee who is younger than 21 (they usually are) or has worked less than 1,000 hours in a year (it's typically less than a 1/10 of that).
I've had a heck of a time trying to find a plan that allows both roth conversions (thinking ahead to a future roth pipeline after FIRE) and a policy that allows me to open an account with them though I have a PT employee during a portion of the year.
I've spoke to the following and this is what they have said:
Fidelity- Employee okay, No rollover
Vanguard- No employee, No rollover
TD Ameritrade- Rollover allowed, No employee
Charles Schwab- No rollover
E*Trade- Rollover allowed, No employee
Giving up the employee is not really an option. Around the busy season, I'm already working 12-14hrs/day, 7 days/week and I need the help.
SEPP withdrawals are a possibility but I would have to build a substantially largest 401(k) to have the yearly withdrawal the same I would with an account that I could take 4% from. And the lack of flexibility in the required withdrawals is obviously not ideal.
Has anyone else run into this issue? Workarounds? Other plan providers to call?