EACA credit question

[virgil c]

I opened my Solo 401K, with EACA, in 2024 and while I was doing my 2025 taxes, I realize my accountant didn’t file for 8881 nor claimed the tax credit in 2024. Do I lose that year of credit or can I start my three years in 2025?

Thanks.

virgil c

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[Bill Moyer]

My understanding is if your plan contains an automatic enrollment option, and is enabled, that the three year credit can be used in later tax years.

It’s unclear if the credit goes away for years without any self-employment income, since that would create a loss? George or Mark, please chime in!

Bill Moyer

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[creative_investor]

It’ll be interesting to hear what others say about this, but I would suspect it doesn’t matter whether you actually contribute to the plan. It is just the fact that you have a plan and it has the auto-enrollment capability. So I think the $500 would still be available in a year you don’t make anything (or choose not to contribute).

creative_investor

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