Directing passive income into a Solo 401k?

[Graeme Black]

I know the correct answer to this ... contact a knowledgeable CPA ... and I am looking for one, but in the mean time I wanted to see if anyone any insight into this.

Here is what I want to try to do:

Set up an S Corp to run all my rentals through (I only have one so far, but plan on a lot more).  

Pay myself a salary (and my wife for that matter) for managing the S Corp.  

Funnel the salary money and potential profit sharing into a self directed solo 401k's.

For the most part my research says this is okay, however can I do this if the properties are generating positive cash flow, but after depreciation are generating little to no taxable income. 

My overall goal is to be able to put more money into retirement plans.  My wife an I are already maxed out in employer plans.  We have a fair amount of capital available to purchase rentals, but this capital is all the result of shares vesting, causing us no end of tax liability issues.  So I want to turn that money into something that can be funneled into a retirement account of some sort.

Let me know if this makes sense.  I know this is a very complex issue and may not be suited for this type of discussion.

Thank you,

Graeme Black