Can this business owner adopt a solo 401(k) for 2007? | Ed Slott and Company, LLC

Can this business owner adopt a solo 401(k) for 2007?

I have a client who was a part owner (incorporated and I believe Sub S) of a company that had a Simple IRA plan in effect since 2000. The client legally separated from the corporation in August of 1986 and a legal separation agreement of some kind was signed by all stock owners. The agreement apparently ( I haven't seen it yet) states that his stock ownership in the company was to be surrendered to the company at that point in time (not sure if there were ever any physical stock certificates surrendered or transferred) . He also started his own company in August of 2006 (100% owner in new Sub S). So the question is this: since he wasn't legally an owner his previous company in 2007, can he adopt a new retirement plan for his new business for 2007? He still has $ in the previous company Simple IRA, but no contributions were made in 2007 and he is no longer an owner of the previous company. Thanks! Tim

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