Can a physician open a solo 401k plan? My wife and I are physicians, and we recently formed a professional medical corporation designated as an S-corp. (of which we are the sole employees and shareholders). We are interested in setting up solo 401(k)s.
Just like a solo 401k can be adopted by sole proprietorships, limited liability companies and partnerships, an S-corporation may also adopt a solo 401k plan provided it does not employ non-owner full-time W-2 employees. The solo 401k qualified plan would be established for the employer (in this case the S-corporation) for the exclusive benefit of the owner-only employees (both spouses in this case).
The solo 401k plan would allow you both to make contributions based on your respective W-2 wages generated from the S-corporation. Visit Here to learn how to calculate annual solo 401k contributions for S-corporations.