Regulations

Can I Use My Spouse’s Income to Contribute to My Solo 401k Plan?

February 6, 2017 | By Mark Nolan

QUESTION:

Can I contributed to my solo 401K if my wife has about 90K/year of salary? If so, what is my maxim contribution?

ANSWER:

No as you can only contribute to the solo 401k based on your net self-employment income, not your wife’s self-employment income.
However, you may qualify for a spousal IRA contribution based on her earned income. You can open spousal IRA with Fidelity Investments for example.

Spousal IRAs

“If you file a joint return, you may be able to contribute to an IRA even if you did not have taxable compensation as long as your spouse did. The amount of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the formula in IRS Publication 590-A.”

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About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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