Family is self employed and I believe the amounts they are able to contribute to their retirement plans is higher than a 401k would allow.
@Madison85 could you clarify.
https://www.irs.gov/Retirement-Plans/One-Participant-401(k)-Plans
It’s often referred to as a solo 401k. You can achieve higher total contribution amounts for the owner-participant and spouse in a business wirh no employees.
(You’ll have to type in the link)
For a solo 401k:
[quote]
Total contributions to a participant’s account, not counting catch-up contributions for those age 50 and over, cannot exceed $53,000 for 2015 and 2016.
$53,000 each? So that could be $100,000 for both parents.
The 2016 max with spouse if both are over 50 years old is $118k.
^^ Well, there you go. The parents might be in catch up mode and doing near-max…especially during high income years.