Husband/Wife solo 401(k)

[Lori H]

husband and wife are setting up a plan. They will be the only participants. By my calculations they would need to earn $260000 between them to max out. They are both over 50. Do you agree?

annual comp: 260000 total

2009 deferral: 16500 each

2009 profit sharing: 65000 (32500 each)

2009 catch up: 5500

[Guest Sieve]

Since the deferrals are not subject to the 25% of compensation deduction limitation, I would agree ($32,500 X 2 = $65,000, which is 25% X 260,000)--assuming, of course, that the entity does not cause H & W to be considered as having self-employment income.

[Lori H]

Since the deferrals are not subject to the 25% of compensation deduction limitation, I would agree ($32,500 X 2 = $65,000, which is 25% X 260,000)--assuming, of course, that the entity does not cause H & W to be considered as having self-employment income.

Thanks.

it's an LLC and they have monthly fed and fica taxes with held