Here's our situation. I am a W-2 employee making approx $120-130k/year. My wife stays home, but runs a home business that nets barely a few hundred dollars a year. We file jointly.
I also run a side hustle that may make about $10k this year, and may grow after that.
Presently, I max out the 401k contribution at work and on top of that contribute the maximum to Roth IRA for both myself and my spouse. This allows us to stash away $29k a year ($18k for 401k, $5.5k each for Roth IRA) in tax advantaged accounts.
I have three questions:
(1) Is it possible to use my income as a basis to stash away funds in a SEP-IRA set up for my spouse? I ask because the SEP-IRA has certain limits based on income earned by the business. My wife's business does not earn that much, but I do, and I was wondering if we could use my income to define the contribution limits since we file jointly.
(2) Is it possible for me to set up a SEP-IRA for my side hustle?
(3) Would I be able to set up these SEP-IRA funds IN ADDITION TO our existing contributions to my 401k and our Roth IRAs? Or, in other words, would these SEP-IRAs eclipse our present situation?
Wondering if anyone knows the answers to these questions. Thanks.
