Pursuant to a Qualified Joint Venture (QJV), evenly split between spouses filing jointly in a non-community property state, is there any issue whatsoever if a self-employed 401k plan (pre-approved variety) is established using the EIN/info of the non-primary-taxpayer/non-filing spouse (Spouse B)? Primary taxpayer/filing spouse (Spouse A) would serve as Plan Administrator.
This would be Plan #001 for Spouse B. No other plans currently in existence. Spouses are only people involved; no employees now or in the future. Individual accounts would then be created within Spouse B's Plan—one for Spouse B, one for Spouse A—using respective personal info (rather than EINs).
Basically want to confirm that there is no requirement that the PLAN for a QJV must be established using the primary taxpayer's EIN/info. This question comes about because of the different inferences of the two bolded sentences below (from the IRS website, link at bottom), though the latter seems to carry more weight here:
Thank you.
This would be Plan #001 for Spouse B. No other plans currently in existence. Spouses are only people involved; no employees now or in the future. Individual accounts would then be created within Spouse B's Plan—one for Spouse B, one for Spouse A—using respective personal info (rather than EINs).
Basically want to confirm that there is no requirement that the PLAN for a QJV must be established using the primary taxpayer's EIN/info. This question comes about because of the different inferences of the two bolded sentences below (from the IRS website, link at bottom), though the latter seems to carry more weight here:
vs.In general, spouses do not need an employer identification number (EIN) for the qualified joint venture
Spouses electing qualified joint venture status are treated as sole proprietors for Federal tax purposes. Using the rules for sole proprietors, an EIN is not required for a sole proprietorship unless the sole proprietorship is required to file excise, employment, alcohol, tobacco, or firearms returns. If an EIN is required, the filing spouse should complete a Form SS-4 and request an EIN as a sole proprietor.
https://www.irs.gov/businesses/small-bu ... businessesIf the spouses elect to be treated as a qualified joint venture, how do they report and pay federal employment taxes?
If the business has employees, either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship.
Thank you.
Statistics: Posted by DukeGordon — Tue Sep 17, 2024 1:16 pm — Replies 0 — Views 22
