Selling our biz and opening solo 401K

[Katzilla]

MY husband and I selling our business. We expect to have a good chunk of cash after the sale closes and I've read the "order of investment" topic - super helpful. My question - solo 401Ks are only for biz owners WITHOUT employees. Our biz has employees but after we sell the biz we obviously will have none. Can I open a solo 401K with cash from the sale of the biz? Can I use the current biz name (it's an S corp) to open the solo 401K, or is it better to set up a new biz an do it under that new name?

[bacchi]

401k contributions are from earned income. Where is your earned income coming from if not the business, which has employees?

[harvestbook]

If you are selling the corporation and name, I doubt it would work. Maybe you could do an end run by establishing a new corporation or entity that "advises" the new business owner during the changeover and make that part of the sale price, but I don't see how you could stretch that past 2018, and then you'd have to roll it into something else. If you're seriously looking for a legit way, a CPA may be able to give advice.

The other option is to fire all your employees right now and max your own advantages-- the American way!

[DavidAnnArbor]

Partly it really depends on how much the business profit makes you, and whether you are an S Corp or sole proprietor.
Too many unanswered questions to be able to give an answer.