Qualifying for sd roth solo 401k

[Mike T.]

I am a w-2 employee. I would like to start a side business for my wife and I to qualify for sd solo roth 401k. If I start an llc that executes regular marketing, wholesales some properties and completes some rehabs. We will have no other employees. Will this income qualify for sd 401k? Any additional advice on qualifying would be appreciated.

Thanks for everyone who takes time out of their day to help others.

[Kirk Chisholm]

Mike T. There is no simple answer without more information about your situation. Setting up any type of 401k plan is typically more complicated than just setting up an IRA. There are many factors which can impact the answer to your question. Whether you or your wife contribute to another 401k plan is one such factor.

Frankly I would not suggest posting all the pertinent information on this or any forum to get your answers. I suggest you consult a tax professional to give you the best answer possible. If you do not use a tax professional to prepare your taxes or if you use a tax professional who doesn't have expertise in 401k plans, then I would suggest finding on for at least one year to make sure it is done properly.

Some financial advisors can help to set up a 401k plan, depending on what is required, but whoever is preparing your taxes would be in the best position to advise how much if any money can be contributed in any given year.

As a a side note. You mentioned "SD", by which I assume you mean "self-directed". Are you looking to use it to invest in real estate? if you are looking to use these retirement funds to invest in assets such as real estate inside the plan, then you should consider an financial advisor or tax advisor who has a background in this area.

Sorry for the long-winded answer, but while the answer you are looking for may seem simple, there are a lot of factors which can change the outcome.

Kirk