Self 401K
Dear Mr Slott
I have a client who would like to do a self-401K for 2009. Can she still file the documents and receive the deduction?
If so what are the deduction limits for 2009?
Thank you,
Marshall Howard
Dear Mr Slott
I have a client who would like to do a self-401K for 2009. Can she still file the documents and receive the deduction?
If so what are the deduction limits for 2009?
Thank you,
Marshall Howard
Permalink Submitted by mk foss on Wed, 2010-03-03 05:04
A solo 401k must have been established by December 31, 2009 to make a 2009 deductible contribution. The total limitation is $49,000 – the same as a SEP but the method of calculating the deduction may allow a greater dollar amount to be contributed with the solo 401k.
A SEP can be opened in 2010 by the due date of the 2009 return and qualify for a 2009 tax deduction.