Question regarding setting wife’s solo 401k

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

NITRAS

Hospitalist
5+ Year Member
Joined
Mar 26, 2018
Messages
1,372
Reaction score
2,335
My wife is very part time at some consulting. She is an RD, does some counseling for picking eating and is doing some diet modification. I think she made $2000 this past year. Probably makes some more in the next years, but who knows.

I was looking into doing a solo 401k. I can do 100% of her income with a 25% matching.

Does this mean I can put 125% of her profit into an account? Would that cause double tax on the money? It seems like the unless she makes more than the maximum contribution, I don‘t think it makes sense to match her.

Sorry, I didn’t see this elsewhere.
Thanks

Members don't see this ad.
 
My wife is very part time at some consulting. She is an RD, does some counseling for picking eating and is doing some diet modification. I think she made $2000 this past year. Probably makes some more in the next years, but who knows.

I was looking into doing a solo 401k. I can do 100% of her income with a 25% matching.

Does this mean I can put 125% of her profit into an account? Would that cause double tax on the money? It seems like the unless she makes more than the maximum contribution, I don‘t think it makes sense to match her.

Sorry, I didn’t see this elsewhere.
Thanks

It actually ends up being a bit less than that since you have payroll taxes to take into account.

Here's a handy calculator that should help:

Individual 401(k) Contribution Comparison
 
  • Like
Reactions: 1 user
Top