Should I list or add my spouse when I open my self-directed Solo 401k?

Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily Solo 401k FAQs.

Solo 401k Question: I am setting up a Solo 401k for my law practice.  My spouse has a corporate job but will be quitting and working with me in the law practice next year.   Can my spouse be added to the plan now?

Response:

Your spouse can be added to the plan at the outset as a Co-Trustee.  Once your spouse is working in the business and reporting his/her own self-employment income, your spouse can start participating including setting up a separate account in the name of the 401k for the benefit of your spouse.

One’s spouse or business partner may participate in the solo 401k plan as long as he or she is reporting his or her own earned self-employment income.

Please note that there is no such requirement for the spouse to be listed as a cotrustee.

In completing our online Solo 401k application, one of the questions asks whether a spouse or business partner will participate in the plan.

To add a spouse as a co-trustee, simply list their full legal name along with the phrase “Co-Trustee Only”.

The spouse will then be listed on the solo 401k establishment documents as a co-trustee and it will be very easy to onboard the spouse whenever the spouse is ready to start participating in the plan.

Tags: , , , , , , ,

About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

  •  

  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571

    Monday-Friday

    8:00 am - 4:00 pm PT

    Why us?
MENU