Solo 401k Opening Questions

[Neil Copeland]

A couple of questions that may lead to others, so here goes. I have a single member LLC that owns rental property, and all of the rental income and rental expenses flow through that LLC. At tax time, that profit/loss from the LLC flows through a Schedule C to my personal tax return. I am also a W2 employee. Having changed jobs a few times, I also have a traditional IRA where funds from old 401k's have been rolled. Questions below.

1. Can I open a solo 401k since I have an income producing LLC?
2. If the answer to #1 is yes, can I also roll the IRA funds into the new solo 401k? I understand that any future deposits into the solo 401k must come from the LLC and not from me personally.

Thanks in advance.

[Neil Copeland]

Had some time to chat with my CPA, and she stated the primary requirements for self-employment are the active income (as you have all schooled me on), the income taxes paid for the business (which would flow through my LLC to my personal return), and the self-employment tax that would need to be paid. Based on this, I will have further questions about the use of a Solo 401k, but will post them in a different section if appropriate.

Thanks again to you all, and looking forward to getting started.