Hi - wanting to set up a solo 401k and want to make sure we qualify....
My husband is a realtor and set up as a partnership (I’m a 5% partner). I’m a w-2 employee elsewhere. We are going to buy rental property.
Is the account set up as a joint trust and we would both trustees? Can we fund the entire account with my rollover IRA which is currently at Schwab.
Assuming you are both Self-Employed in the same business you can open a Solo 401k which is a Retirement Trust and you both would be Trustees. You would have one Solo 401k Plan and you both would each have a participant account. You would fund your participant account with your Non-Roth IRA. Your husband could fund his account with Rollovers of his non-Roth IRAs or previous employer retirement accounts. Also, the accounts can each be funded with contributions based on your individual Self Employed Income. Please note: You can't merely be an owner but must work in the business. If you file as a partnership where you each get k-1's self-employment income is reported on Line 14. If you each receive a k-1 with at least some amount reported on Line 14, this will demonstrate that you are self-employed & if there are no full-time employees working for you in any business you own/control you could establish a Solo 401k in which you each participate.