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Solo 401K Question

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a2743
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Solo 401K Question  Reply with quote  

My wife has a small business, she is 71 years old with a SEP IRA and traditional IRA which she can no longer contribute too because of her age. She also now is required to take RMD from her IRA's. We have been told she can set up a solo 401K and instead of taking her $1000.00 a month wage she can contribute that amount to a 401K and take a business expense deduction on her taxes. Also, another benefit, no RMD. Since she will not be taking a wage she can take a distribution from the business as needed.

This sounds like a good plan, however, I would appreciate comments. I should add we have been told that the $1000.00 a month going into the 401K we would need to take out for social security and medicare and report on form 941, but no federal or state taxes those would be covered by sending in estimated taxes.
Post Tue May 26, 2015 1:01 am
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