Solo 401(k)
What is the deadline to contribute solo 401k salary deferral contributions?
Does the deadline differ base on entity (i.e. sole-prop, S-Corp LLC, etc.)?
Does the updated 2020 tax deadline (May 17) impact salary deferral deadline?
Thank you
Permalink Submitted by William Tuttle on Fri, 2021-03-26 01:53
All W-2 employee’s elective deferrals must come from compensation not already received with a pay date on or before 12/31. This still applies to S-Corp 2% shareholder W-2 employees. The postponement of the individual’s 2020 tax filing deadline to 5/17/21 has no effect.
An LLC that has elected Subchapter S tax status is treated the same as a corporation that elects Subchapter S tax status.
All self-employed individuals have until their tax filing deadline including extensions to to make employee elective deferrals. Provided they have made an employee elective deferral election on or before 12/31. The 2020 tax filing deadline has been postponed until 5/17/21. The extended deadline remains 10/15/21.
An LLC that has not elected Subchapter S tax status is treated as a disregarded entity. A single member LLC is treated as a sole proprietorship. A multi-member LLC is treated as a partnership.