Hi Bogleheads,
Here's my situation:
Me: Corporate W-2 job with $200k salary and a single-member LLC with estimated ~$400k net income this year.
Spouse: No W-2 or 1099 earnings.
Total Income: ~$600k
I'm trying to qualify for the Qualified Business Income tax deduction. In order to receive the full benefits of QBI, I need to reduce our married filing jointly AGI to $329,800.
I'm just about there by maximizing my own SEP-IRA contributions, front-loading some costs, and prepaying business expenses I anticipate to have in 2022. However, I'm still short by $40k-$50k.
One option I read about seems to imply that the LLC can make a SEP-IRA contribution to one's spouse as long as he/she is working for the company. I don't mind paying my wife for services that she can render, but is it even possible for a single-member LLC to do this? Or is this option only available to LLC partnerships or S-Corps that pays W-2 wages?