Solo $01K and IRA

Husband age 68 in 2015 (73 in 2020) Wife age 62 in 2015 (age 67 in 2020). H created a solo 401k in 2015 and reported in
Schedule C profit before his 401k contribution of $ 10,000 each in years 2015 to 2017. The $ 10,000 profit in those years were reduced each year by a $9,000 contribution to his solo 401k. He also made a matching contribution each year on his behalf.
In 2018 and 2019 the business lost $8,000 each year. In 2020 he expects a loss of $12,000

1. Could his business been able to make a 401k contribution in years 2018 and 2019 even though Schedule C showed a loss of $8,000 each year.
2. Can he pay his wife a salary of approx $ 4,000 in 2019. She does phone calls writes checks, makes deposits, reconciles the bank, sets appointments .
3. Therefore can wife set up a Roth IRA in 2019 and she can contribute $ 4,000 for herself?
4. Can he contribute to his Roth IRA in 2019 $ 4,000 also because his wife had $4,000 in W2 wages



This is a duplicate post.

Add new comment

Log in or register to post comments