If your spouse has enough earnings, then what you can contribute to your Roth IRA can come from her earned income.
If your solo 401(k) is a solo Roth 401(k), then you can double count that earned income: $7K (or $8K) to your Roth IRA and your earned income minus 1/2 of FICA+medicare taxes to your Roth 401(k).
If your solo 401(k) is a solo traditional 401(k), then you can contribute all your earned income minus 1/2 of FICA+medicare taxes to traditional 401(k) since your earned income is well below the 401(k) deferral limit.
Whatever you don't contribute to your solo 401(k), you can contribute to your Roth IRA including that 1/2 of FICA+medicare tax amount. Also you can use your spouse's earned income that she does not contribute to her 401(k) and Roth to contribute to your Roth. Also, if her earned income is limited, then she can use your leftover earned income to contribute to her Roth.
Or various combinations.
If your solo 401(k) is a solo Roth 401(k), then you can double count that earned income: $7K (or $8K) to your Roth IRA and your earned income minus 1/2 of FICA+medicare taxes to your Roth 401(k).
If your solo 401(k) is a solo traditional 401(k), then you can contribute all your earned income minus 1/2 of FICA+medicare taxes to traditional 401(k) since your earned income is well below the 401(k) deferral limit.
Whatever you don't contribute to your solo 401(k), you can contribute to your Roth IRA including that 1/2 of FICA+medicare tax amount. Also you can use your spouse's earned income that she does not contribute to her 401(k) and Roth to contribute to your Roth. Also, if her earned income is limited, then she can use your leftover earned income to contribute to her Roth.
Or various combinations.
Statistics: Posted by livesoft — Sat Jul 20, 2024 10:14 am — Replies 1 — Views 77
/english-betterindia/media/post_attachments/uploads/2023/03/dr-prasad-deodhar-1-1679902706.jpg)
.jpg)