Design for self-employed business owners and independent contractors, the Solo 401k plan can also cover their spouses. If the spouse is also involved in the business, he or she can also make contribution to the plan. In this Solo 401k Quick Tip video, Sense Financial clarifies the rules and contribution limits that are applicable to the Solo 401k spousal contribution.
Solo 401k Spousal Contribution
If your spouse is involved and earns income from the same business activity, he or she can participate in the Solo401k plan. The same contribution limits apply to spouses. So, together, you can contribute up to $106,000 for 2015. If both of you are over 50, the total contribution limit after catch-up contribution will be $118,000. Since both of you can contribute to the same Solo401k plan, there is no need to spend extra time or money to create another retirement plan.