We have a client trying to squeeze in contributing to a Solo 401k for the year instead of a SEP. We, however, are trying to get some information around the employee contribution.

The account has been opened, and we’re waiting on a company to finish with the plan docs for signature to go along with it. We also understand that the employee contribution needs to be “elected” to be done by December 31st but can actually be contributed by the tax deadline much like the profit sharing portion. We have a few questions to go along with this:

1) What constitutes “electing”?
2) Are we still able to do it for 2017 if the company with the docs gets it done on January 3rd or 4th? Basically, the account is opened 2017, elects to contribute on Dec 29th, and final adoption plan is signed January 4th. Can that be done?
3) If that cannot, can we do it same day? For instance, we get the docs pushed through by Dec 31st and then elect on Dec 31st?

Any help is appreciated!

Andrew