BACKGROUND: I’m interested in opening a solo 401k account to make private loans to others from, and have a few questions.
My business makes about $90k per year, and I would like to tax-defer $50k per year.
I am married, and my wife works in the business and also has an IRA with $80k in it that we could roll-over.
QUESTION 1: Can we together defer the $50k per year with a solo 401k, or are the deferral limits per account, and not per person?
ANSWER: The annual solo 401k contribution limits apply separately to each business owner.
For the 2014 tax year, you can each defer up to $52,000 per year.
QUESTION 2: The business is an LLC and has it’s own EIN. Do I need another EIN that is separate from even that one for the 401k?
Aleks in Utah