QUESTION:
The Mega Roth might work very well for one of my clients. He is Sheriff and has a real estate S-Corp. business on the side with no employees and wants to maximize the ROTH for him and his wife. Would his wife need to be an employee to get the $66K limit for both?
ANSWER:
As long as both spouses work in the same self-employed business, thye can both participate in the same soo 401k as the plan is sponsored by the self-employed business. Both spouse’s would base their contributions to the solo 401k on their respective W-2 wages from the business (along with other factors such as their age and whether they make contributions to another 401(k) plan such as through a “day job”).
