No Longer Self-Employed Solo 401k Eligibility

QUESTION:

If I would change my status from schedule C to full-time employee, what should I do with the self-employed solo 401k  account without any tax issues?

ANSWER:

 If you were no longer self-employed, you would need to close the solo 401k plan. Once the business owner is no longer self-employed, he has the following options: 

• Transfer the Solo 401k to an IRA which is considered a trustee to trustee non-taxable direct rollover. If the solo 401k plan holds alternative investments such as real estate, and cryptocurrency for example, those investments can be moved over in-kin to the IRA.
  

• Transfer the solo 401k to a full-time employer 401k provider which  most likely will not allow for alternative investments, just traditional investments such as mutual funds an equities.