Spouse contributions to Solo 401k
I'm planning to set up a Solo 401K, but I'm having trouble finding information about married couples with Solo 401K's. Should my wife and I have separate Solo 401K's? Can one Solo 401K be shared between spouses (both contributing to the same account)?
I'm self-employed with no employees and my business will net about $100K this year. My wife actively helps with the business, but I've never explicitly paid her with a W-2 or anything like that. What's the best way to maximize the amount we can contribute to a Solo 401K?
Most Popular Reply
@Jim P.
With a solo 401k plan, each spouse can contribute $53,000 and each can contribute a catch-up amount of $6,000 if age 50 or older. Therefore, both spouses can supercharge their retirement savings by contributing a combined amount of $118,000.
If you are both owner-employees of the self-employed business sponsoring the solo 401k plan, both of you can participate in the same solo 401k plan.
The following covers the self-employment rules.
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center