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roniegh · Sep 5, 2007, 07:18 AM

Hi,

I am on a F2 Visa because of my wife's F1 Visa.
She is working full time, she is on her OPT (Optional Practical Training) now.
She already has her Social Security Number and she is contributing for her 401k.
We are both legal in the US and we are both non-residents.

1) Is it possible for her to start a 401k for me?
2) Do I need a Social Security Number for that?
3) As I am on F2, that means not working, and I have to be on a work Visa or OPT to get an Social Security Number, what could we do if the answers for questions number 1 and 2 above are YES?

We really appreciate your time and help, thank you in advance.

Best regards,

Ronie

ScottGem · Sep 5, 2007, 07:23 AM

401Ks are provided by your employer. No oen can open a 401K for you.

roniegh · Sep 5, 2007, 07:52 AM

Hi Scott,

And is it possible for her employer to open a 401k for me?
And deduct the contributions from her paycheck?

Thanks,

Ronie

ScottGem · Sep 5, 2007, 08:03 AM

Didn't you read what I said? The answer is no! A 401K is provided by an employer for an employee.

roniegh · Sep 5, 2007, 09:53 AM

Sorry!

I asked that because I read this...
***
If your non-working spouse doesn't have a spousal IRA, you might want to set one up. You can make annual deductible contributions of up to $2,000 into this kind of account, even if you participate in an employer-sponsored retirement plan like a 401(k) (which used to preclude deductible spousal contributions). But watch your modified adjusted gross income (AGI) - this type of deductible IRA contribution is phased out at AGIs between $150,000 and $160,000. (You can calculate your reduction by subtracting $150,000 from your modified AGI and dividing the result by $10,000.)
***

And also, despite the matching, who pays the 401k is the employee (from his/her paycheck).

Thanks,

Ronie

ScottGem · Sep 5, 2007, 11:17 AM

An IRA is NOT a 401K, they are different things. Anyone can setup up an IRA, just go to your bank or a brokerage and ask about setting one up. In a spousal IRA, even if non-working the working spouse can make tax deductible contributions to it.

Yes, the employee CONTRIBUTES to the 401K with pretax earnings. That's why its only the employee who can be a participant.

roniegh · Sep 5, 2007, 11:26 AM

Thanks Scott, now it is clear.

Regards, Ronie

AtlantaTaxExpert · Sep 5, 2007, 06:55 PM

If you are opening a spousal IRA, you may need to apply for an Individual Tax Identification Number (ITIN) using Form W-7.