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Business owner has a spouse that has FICA less than the $150K threshold.  It is my understanding that the spouse would not be considered a Highly Paid Individual for Roth catch up rules.  Do you agree?

Posted

Whether § 414(v)(7) restricts age-based catch-up deferrals to Roth contributions turns on the participant’s Social Security wages for the preceding year.

Nothing in Internal Revenue Code § 414(v)(7)(A) aggregates another person’s wages with the participant’s wages, even if other tax law might do so.

https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleA-chap1-subchapD-partI-subpartB-sec414.htm

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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