Solo 401K Common Ownership
Hello,
Thank you for your help in advance.
I have a couple client. Husband owns a business with multiple employees and the wife owns the building in a separate entity to which the husband’s business pays a rent. She is the only employee and plans to stay that way.
The husband’s business is 100% owned by him and the wife business is 100% owned by her.
Question 1: Will this separation of ownership enable HER to set up a solo-k?
Questions 2: The wife is actually also taking a W2 from the husband’s company. Husband’s company doesn’t have any retirement plan. Would either husband or wife’s employment with each other’s company affect common ownership rules?
I initially thought she can set up a Solo K, but I was thinking this situation can be abused too. So, please share your expertise.
Thank you!
Permalink Submitted by William Tuttle on Wed, 2019-06-26 01:14