Solo(k) deadline for employee & employer contributions
A sole-proprietor client is being told by their CPA that they can open up a solo(k) for 2024 and fund it with both employee & employer contributions up through their tax extension deadline of Sept 15.
I thought that after Secure Act 2.0, you could open the solo(k) and only make the employee contribution for a prior year up until the tax deadline of April 15, however employer contributions could be made up until Sept 15.
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Thu, 2025-04-17 13:14
Sec 317 of Secure 2.0 only applies to an unincorporated business’ newly adopted solo k plan, but the mid March due date suggests that this may be an S Corp. Can you clarify this?
You are correct about the employee contribution (elective deferrals) deadline being the tax due date without regard to extensions, but the employer contribution deadline is the due date with extensions.
Permalink Submitted by Todd Marquardt on Fri, 2025-04-18 11:56
Hi Alan – thanks for the reply. My client is a single-owner LLC. It is not an S Corp. Thank you.