You'll need to sign in or create an account to connect with an expert.
A sole proprietor (self employed person) filing a Sch C means only one person owns the business ... there cannot be a second person. So is the spouse an employee ? If you have a solo 401K for the sole proprietorship then there can be only one person listed.
Both, because the employer contribution must be the same percentage of compensation for each spouse (for 2018, up to a limit of $275,000 of compensation per individual taken into account and limited to a maximum addition for each spouse of $55,000 plus $6,000 age-50 catch-up per individual).
Also, it's 20% of net earnings. Net earnings are net profit minus the deductible portion of self-employment taxes.
(Critter, a solo 401(k) can cover both spouses who both participate in the business.)
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
bethfly
New Member
helloTT102
New Member
smroyal96
New Member
dala9304
New Member
areja
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.