ForumsSolo 401k – EligibilityCan Spouse be added to solo 401k later?

Forums Solo 401k Solo 401k – Eligibility Can Spouse be added to solo 401k later?

  • Can Spouse be added to solo 401k later?

    George Blower replied 2 years, 6 months ago 2 Members · 4 Posts
  • 3 Replies
  • Carrie Yiqing

    Top SubjectSolo 401k,Solo 401k – Eligibility
    Top ForumsSolo 401k, Solo 401k – Eligibility

    Carrie Yiqing

    Carrie Yiqing

    Top SubjectSolo 401k,Solo 401k – Eligibility

    October 30, 2021 at 4:38 pm

    My husband just started small business this September and we are considering open a solo 401k plan. I have full time job and has employer sponsored 401k. During 2021, I have maximized my 401(k) contribution limit of $19,500, and I have also put after tax 401k of $17k and already in-service rolled over to my Roth IRA plan. When we open solo 401plan, do we need to include spouse in the plan at the beginning? If we added later, is there any extra fee for the change later on?

    Carrie Yiqing
  • George Blower

    Top SubjectDaily Live Webinar,Solo 401k
    Top ForumsDaily Live Webinar, Solo 401k

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    November 1, 2021 at 3:38 am

    @KeriJo

    Carrie Yiqing

    Top SubjectSolo 401k,Solo 401k – Eligibility

    Great questions!

    You have the following options:

    1) You can leave the non-participating spouse off and add the spouse later (if you choose to do so).

    2) You can add the spouse now as a co-trustee (when completing the online application to Open a Solo 401k please simply write the words “Co-Trustee” after the spouse’s name when respondign to the question asking whether the spouse will participate). Adding the spouse as a “co-trustee” will allow such spouse to have signing authority and make it easier when and if such spouse later wishes to particpate in the plan (i.e. the plan won’t need to be amended to add the spouse as a co-trustee and an account will simply need to be opened for the benefit of such spouse under the name and ein for the plan).

    3) If the spouse is also working in the self-employed business and reporting his/her own self-employment income, you can add the spouse now as a participant (by simply listing the spouse’s name in response to the question on the application asking whether a spouse will participate in the plan).

  • Carrie Yiqing

    Top SubjectSolo 401k,Solo 401k – Eligibility
    Top ForumsSolo 401k, Solo 401k – Eligibility

    Carrie Yiqing

    Carrie Yiqing

    Top SubjectSolo 401k,Solo 401k – Eligibility

    November 1, 2021 at 9:39 am

    Thank you

    @george

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    So looks like I need to open ‘Co-trustee’ but hold on open bank account/brokerage account until the year actually needed?

    Also may I ask from your experience, whether brokerage account will indicate in the account name ‘Traditional’, ‘Roth’, ‘Voluntary after tax’? or we have to memorize the account number for it’s purpose.

    Carrie Yiqing

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