The ownership in the related entity, the restaurant, will
probably keep you from opening the Individual 401k. You
could offer a 401k, SEP or SIMPLE plan.

The losses don't matter because of the Department of Labor
and IRS rules, it is the providing of benefits to employees
that matter.

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'm considering investing in an individual 401k plan.

The self-employment income that would apply would be income from my
small legal practice (no employees). I also have regular wages from a
job (that does not offer any retirement plan). My spouse is a real
estate agent and has income from that (also no employees). I have
another business that involves leasing (with no employees) with
income. Finally, I have a restaurant, which does have employees and
operates at a BIG loss.

So, if you add up all of the business income and losses from all four,
there is a NET LOSS because of the restaurant.

The question is -- can I still invest some of the net income from the
businesses that have net income in an individual 401K -- or does the
fact that all of the businesses combine are at a net loss impact my
ability to do this? Stated differently, for purposes of the
individual 401k, does the IRS look at it on a business by business
basis or must you have net income from all businesses combined?

Thanks

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