After doing some snooping around on the internet today and reading through previous threads on this subject I found this article today:
http://thefinancebuff.com/after-tax-contributions-in-solo-401k.htmlOur income situation is roughly as follows:
-W2 Income For Me From Employer: $110k
-W2 Income For Wife: $95k
-"Side Business" income for 2015: Likely ~$400k (Line 17 of 1040)
The business income comes from an S-corp. My wife is a 50% owner in this business and is completely passive. Thus this passive income can be offset with passive losses from depreciation of our property, other business expenses, etc. Our current tax situation is such that taking the income as earned income from our business is NOT efficient for 2015. Our taxes are far lower taking the income on Line 17 of the 1040 as S-corp income, which is apparently broken out on Schedule E.
I don't think there is much room for us to do anything to reduce our taxable income in 2015 much. My main secondary goal is to use after-tax income to funnel it to the Roth bucket of our SoloK to help with
future taxes. Is there any way to do this conceptually without studying our SoloK documents? I can copy/paste sections from the document later in the thread if someone can explain how to get the money into the plan somehow.
Since our business doesn't want to convert the dollars to earned income from the business profits can I use my W2 income from my job as a contribution to the business somehow and use this earned income to count toward our $53k limit instead? If not, is there any other way to make this work?