My spouse does some work for me in my business and I want to add them to the plan. How do I do this?

Since these plans are only for people who have earned income subject to Social Security and Medicare taxes, you’ll need to generate a W-2 for your spouse if you want to get a contribution into the plan. There can also be entry date restrictions, but we can generally amend the plan to make this work.

Remember that your spouse has to actually work in the business, and the salary you pay needs to be reasonable. So make sure you discuss it with your CPA or tax preparer. But if you’re looking to get more money into a plan to reduce your taxes, getting a contribution in for your spouse can make a lot of sense.