Announcement

Collapse
No announcement yet.

Retirement Accounts

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Retirement Accounts

    I have just finished fellowship and starting a new job . My spouse just started her residency. Her program does not allow residents to contribute to the employer 401k. Is it advisable to start her own individual 401 k ? will we be able to claim tax exemption on the amount we contribute to her retirement account?

  • #2




    I have just finished fellowship and starting a new job . My spouse just started her residency. Her program does not allow residents to contribute to the employer 401k. Is it advisable to start her own individual 401 k ? will we be able to claim tax exemption on the amount we contribute to her retirement account?
    Click to expand...


    Unless your wife has some form of self-employment income or her own S-corp, she will not be able to contribute to a SOLO-401k. She can contribute to an IRA (either a TIRA or a Roth, depending upon your joint income). If you have SE income, you could set up a SOLO-k and hire your wife. However, her contributions will be limited to her earnings.

    Your best choice at this point is probably going to be to contribute to a taxable account until your wife graduates and can find a job with benefits. You won't be able to deduct the amount you invest, but there are other advantages such as flexibility and lower LTCG and dividends rates.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment

    Working...
    X