I have my wife on W2 and I paid my wife $60,000. On W2 box 1 has $34,000 and Box 12 d is $26,000 which is the maximum allowable elective deferrals for age 55.
I selected self-employed Retirement option under BUSINESS tab, and entered 19,500 for Elective Deferrals and 6,500 for Catch up for both my wife and myself. I did not enter Employer Matching Contribution but checked the box for Maximize Contribution to individual.
After skipping few other screens and the result of Maximum Allowed to Qualified Plans under Your Retirement Contributions screen is 0 for my wife and my wife has to withdraw 26,000 from the plan.
What is the issue? Why can't my wife participate in my solo plan?
