QUESTION:
My wife and I are both Trustees on the solo 401k and we both hold funds in the plan. Can I take distributions from her account at age 59 1/2 as she is much younger than me without the consequence of early withdrawal penalties?
ANSWER:
Good question; however, no the IRS rules do not allow for one spouse to piggyback of the other spouse’s age when making solo 401k distributions or even contributions.
Reason being, while each spouse can participate in the same solo 401k which is sponsored by the same self-employed business, they are considered separate participants for contribution and solo 401k distributions purposes.
