Sole 401K for Business Owners with No Income

4 Replies

My husband owns a new company with no employees and makes $0 income from it at the moment. Am I allowed to contribute to his solo 401K as his working spouse? I work for another company independent from the one he owns. Thank you for the feedback.

Originally posted by @Etel Garateguy :

My husband owns a new company with no employees and makes $0 income from it at the moment. Am I allowed to contribute to his solo 401K as his working spouse? I work for another company independent from the one he owns. Thank you for the feedback.

 No you can’t. 401k needs to be funded by the business and owner that established the plan. 

@Etel Garateguy

You could only contribute to the 401k if you also worked for your husband's company. In that case, your contributions to the plan would be based on your income from his company, not your other job income. You might want to look into making contributions for him to an IRA, as @Carl Fischer mentioned. Those contributions could come from your you job. The Solo 401k might be a great option for your husband once income ramps up.

Originally posted by @Etel Garateguy :

My husband owns a new company with no employees and makes $0 income from it at the moment. Am I allowed to contribute to his solo 401K as his working spouse? I work for another company independent from the one he owns. Thank you for the feedback.

 While the fact that you have a w-2 "day job" does not prevent you from setting up a Solo 401k, you would need to work in the business and report your own self-employment activity.