Relative of mine has been a writer for years and has used
the business code for writing on both the Sched C and the
5500-EZ for the relative's solo 401k.
But in 2018 the relative started another, unrelated line
of business (also as a sole prop) and so on the income
tax return filed two Sched Cs, one with a business code
for a writer and one with the code for the new business.
When the 5500-EZ was filed, the relative kept using the
business code that had been in use (the one for writing)
as 5500-EZ only has space for one code.
But what should be done? Is it arbitrary which code to
use? Should you pick the one for the line of business
that had the most income? Are you required to have a
separate solo 401k plan for each business?
- posted 8 months ago