I have two clients (brothers) who own an S corporation (42.5/57.5). They each have their own S corporation and each owns 100 % of their own S corporation. There are employees in the jointly owned S corporation (insurance) and they are not an employee of this joint s corporation. However, they are the sole employee of their own S corporation and yes, payouts come from the jointly owned S corporation into their individual S corporations.

Is there any opportunity to for each of them to be able to contribute more than the maximum amount of a 401K contribution and still keeping it fair for the rest of the employees in the jointly owned S corporation? We are racking our heads on options to be able to contribute more in a “qualified” plan and be able to deduct the contributions. And, if they cannot be deducted, like a 401K Solo, then are there other options for each of them.