Spousal IRA or 401K

[csyuan]

I am a physician and my husband is self employed.  I would like to put more money either an IRA or a solo 401K for him.  Several questions:

1.  Can I contribute to his IRA (traditional then convert to Roth) if he has earned income himself, but not enough to max the IRA limit ($6000).

2.  Can he start a solo 401K and can I contribute to his 401K?

3.  Is it better for him to have a solo 401K or an IRA account, what about both?

Thanks!

[Peds]

csyuan wrote:

1.  Can I contribute to his IRA (traditional then convert to Roth) if he has earned income himself, but not enough to max the IRA limit ($6000).

Click to expand...

assuming you know about the prorata rule yes. MFJ = your income is his income.

csyuan wrote:

2.  Can he start a solo 401K and can I contribute to his 401K?

Click to expand...

if he is self employed.

he is only allowed what is based off his earnings. it doesnt matter where the money comes from though.

csyuan wrote:

3.  Is it better for him to have a solo 401K or an IRA account, what about both?

Click to expand...

you are a doctor. both.

[jfoxcpacfp]

100% with @peds.

If your husband has earnings from 2018 but did not set up a solo-k by the 12/31/18 deadline, this blog post on Backdoor Solo-401k Plans should be helpful.

You have until 4/15/19 to fund a nondeductible TIRA of $5,500/ea for 2018 for your husband and you. There is no deadline on conversion.

Instructions for Backdoor Roth IRAs

[Peds]

jfoxcpacfp wrote:

100% with @peds.

Click to expand...

we might be in an alternate universe ppl!....

[csyuan]

When you say there is no deadline on conversion, do you mean that there is no deadline to convert the TIRA to Roth IRA?

Thanks for the link to the Backdoor solo 401K.  I will look into setting it up for 2019.

[Peds]

Yup.