We use TT Home & Business to file our taxes. I have a one member LLC. We opened a Solo 401(k) so that both of us could make contributions. We're both over 50 so we should each be able to contribute $26,000 as elective contributions as long as our earnings are $26,000 or more, plus company contributions, the max determined by the company's income. This is how I understand the rules to be, if I'm wrong please let me know.
Apparently, I have to issue a W2 to my wife for her to be able to contribute to the Solo 401(k) even though we file jointly and the company's income is reported as our own. Is this correct?
I made a copy of our 2021 TT file to see how all this affects our bottom line and am trying to figure out how to allow my wife to contribute her maximums. I've issued her a W2 for $100,000 but TT says the max she can contribute to the Solo 401(k) is $15,852. It doesn't seem to matter how much the W2 is for, that number doesn't change even if the W2 is less than $15,852. What am I missing?
