Solo 401k Plan for therapist questions

I am interested in establishing a self-directed solo 401k account using your services.

During 2012 I rolled over a Keogh plan account and a couple of 403b accounts (these were all held at TIAA-CREF) into a new self directed traditional IRA (held by Self Directed IRA Services).  

I did not make any contribution to any of these accounts in 2012, I just rolled them over.

QUESTION: Can I still open solo 401k account for 2012?   Or can I only set it up for 2013?

ANSWER: Yes you can open Solo 401k account in 2012 provided you meet the Solo 401k establishment requirements which are: 1). Presences of self-employment income; and 2). Have no full-time employees, defined as those working less than 1,000 hours per year.  Subsequently, the rollover/transfer rules permit the rollover/transfer of 403b funds previously rolled over to traditional IRAs, SEP IRAs and/or SIMPLE IRAS. The only type of IRA that the IRS rules restrict from transferring/rolling over to a Solo 401k is a Roth IRA.

My wife and I are both self-employed as therapists (sole proprietors) of unincorporated businesses. Based on your therapist business you appear to meet the Solo 401k trust qualification requirements outlined above.

QUESTION:  Can we both contribute the maximum individually allowed amounts, if we only set up a single 401k?  Or can we contribute more if we set up two separate solo 401K accounts?

ANSWER: Under the IRS Solo 401k rules, both spouses can participate in the same Solo 401k plan. Therefore, two separate buckets or bank accounts, one for each participant would be opened to separately account for each Solo 401k participant’s contributions, rollovers, gains and distributions once they commence, usually at retirement.

For example, if the name of your Solo 401k plan is Maxwell Solo 401k Trust, and your name is Joe and your spouse’s name is Jane, the bank accounts would be titled as follows:

Account 1: Maxwell Solo 401k Trust FBO Joe Cane

Account 1: Maxwell Solo 401k Trust FBO Jane Cane

QUESTION: My wife has contributed to an SEP IRA in 2012. Can I set up a Solo 401k for myself this year, and then add her to my account in 2013?

ANSWER: Yes you can add her to the Solo 401k trust account now or wait until later years including 2013.

Thank you for your help.

MD