Spouses in a Solo 401(k)

Spouses in a Solo 401(k)

One of the additional advantages of the Solo 401(k) is that a husband and wife can combine their retirement plans into one plan and combine their funds to do investing. So, for example, a husband and wife both own a company and there are no other employees, so they’re both owners then they can both contribute to the Solo 401(k). Both of their IRAs can be transferred into the Solo 401(k), and now it’s in one account and it can be managed by one of them as the plan administrator. Their investments, even in the Solo 401(k) can be separate. If your spouse doesn’t really want to invest in one particular investment, then you can separate that out – that’s an internal bookkeeping issue. So as long as you’re both employers and employees or, the exception is, one of you is an employer, one of you is the owner, and the other, the spouse, doesn’t own the company. The fact that they’re a spouse; they’re an employee. So you can bring them into the company and they can contribute to the Solo 401(k), so it’s nice. That way, depending on your huge, the husband and wife, can contribute, shelter, up to $118,000 a year from taxes and it makes it quite an advantage to the Solo 401(k).