I have started a business with a partner (LLC) and we have done well in our first year making 35K each.
We are in the process of setting up our solo 401k.
I am wondering how to set up our business
structure to max out my pretax contributions.
My facts:
I make 450,000 in my day job as a doc.
I max out my workplace 403b (17.5k)
My wife is a stay at home mom with no other income.
I have maxed out my individual FICA taxes.
My inclination is to split my ownership with my wife so that she may max out her 17.5 individual contribution for the year. The downside is paying fica taxes on her income, but the upside is that we can put away 17.5 individually in her name that we couldn't otherwise because of my 403B contribution.
Thoughts?
