The IRS allows an exception to the no-employees rule when it comes to Individual 401(k)s and that is if you work with your spouse. If your spouse earns income from your business this could double the amount you can stash away in an Individual 401(k) plan, herby reducing your taxable income and allowing you to save more for retirement. Your spouse would make elective deferrals as your employee, up to the $19,500 employee contribution limit (plus the 50-and-older catch-up provision). Then as the employer, you can then make the plan’s profit-sharing contribution for your spouse as well, of up to 25% of compensation. It is always best to consult with a tax advisor for the specific amounts when it comes to making profit sharing contributions.