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Can I contribute to solo 401k for previous year?
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1 Reply
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Yes, you can contribute to a Solo 401k for the previous year, but there are specific deadlines you must meet. If the self-employed business is taxed as a partnership, S-corporation or C corporation, the plan must be established by December 31 if you plan to make employee contributions; otherwise, if you only plan to make employer profit sharing contributions for the prior year, the solo 401k plan may be established by the business tax return due date including the business tax return extension.
However, an exception applies if the self-employed business is taxed as a sole proprietorship resulting in being able to open and fund the solo 401k plan by April 15 for making employee contributions for the prior year. This exception does not apply to S-corps, C-corps. or partnerships as in order to make employee contributions for the prior year the solo 401k plan had to be adopted by December 31.
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