Self-Employed Solo 401k Question Answered – Can I set up a Solo 401k for an S corporation?
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Solo 401k FAQ: My wife and I own our own business. We file as an S Corp. Our accountant that we cannot deduct contributions from our income because we have to be self-employed and have profit-sharing set up. My understanding was because we have no other full-time employees, we can deduct our contributions. Please confirm when you are on the right track.
RESPONSE:
Yes – an individual (and such person’s spouse) who is self-employed with no full-time non-owner/non-spouse w-2 employees working for any business owned by such person or a spouse (if any) can set up a Solo 401k.
The fact that such a person operates the business via an S-corporation will not prevent such a person from setting up a Solo 401k.
Please see more at the following link: Solo 401k Deep Dive Contribution Guides
