QUESTION:
I have a solo 401k. I am curious how to add my spouse to my plan, so I can provide her the ability to contribute to my solo 401k?
ANSWER:
First, if she is not yet listed on the solo 401k plan, we first need to list her on the plan documents. Second, as long as she is also working in the self-employed business that the solo 401k plan was set up for (a.k.a. the plan sponsor), she will also be eligible to make contributions to the solo 401k plan based on earned income that she receives from the business. Third, she will need to open a separate participant account (brokerage or bank account) to hold her solo 401k funds under the plan. She may also need multiple holding accounts if she plans to contribute multiple sources of funds (e.g., Roth, pretax and voluntary after-tax) to the solo 401k plan. Please provide her legal name when you are ready to have us add her to the plan.
