Thank you for your reply. My financial advisor maintains that I cannot do it that way because it’s not a salary reduction (as in withheld on a weekly or monthly paycheck.) Since my husband‘s business is set up as a sole proprietorship, I believe it is not even legal to issue him a paycheck and a W-2 as the income is reported on the schedule C and then on our 1040. I just wanted to make sure that he can participate in the simple IRA and the legal way to contribute. I wouldn’t know the 3% amount to match anyway, until after our taxes for the business are done on the schedule C.
