Hello all, I have a quick question. My wife has a new position where she will be self-employed and I want to set up a Solo 401k for her. Does my having a 401k, or a gross income >$200k affect this in any way? It just seems like too good a deal! Thanks.
One thing you might consider, depending on her level of income, is taking advantage of the fact that the spouse can participate in the Solo 401(k) to tax shelter even more money. ie:
1) Contribute to your employer 401(k) to maximize match.
2) Wife maxes out employee portion of solo 401(k) for herself
3) Wife maxes out "employer match" on solo 401(k) for herself
4) Contribute the rest of your $17.5K max to your spousal solo 401(k)
5) Wife maxes out "employer match" on solo 401(k) for you (total tax shelter for you as a couple: $104K)
So basically you can shelter $104K of income between the two of you every year (as of 2014), plus still maximize your employer match on top of that ($104K + $x free dollars in your employer match per year).
Obviously this would require serious income on her part, but even if you can't hit the absolute maximums, you can still maximize what you can shelter, and if the income is there, you should definitely participate also.