Indiv 401(k)

Submitted by David Bornstein on Thu, 2018-01-18 16:37

Hi….

I’ve had some bad luck with my retirement accounts lately……

1. My tax return preparer failed to include the catch-up contribution in calculating my allowable deduction to my Individual 401(k). Applies to my 2015 and 2016 returns. Can I file amended returns and make the addtional contributions to the account in Q1 2018?

2. For my wife’s business, i instructed my advisor to open an Indiv 401(k) account in December 2017. The account was created and established but he neglected to have me execute the Indiv 401(k) Adoption Agreement? Is there any relief or am i out of luck for tax year 2017 in which case i have to fall back on a SEP IRA?

thank you!



Submitted by Alan - IRA critic on Thu, 2018-01-18 23:48

  1. No, the deadline for employee contributions for each year was 12/31 of the respective year. Catch up contributions are employee contributions.
  2. The adoption agreement must be signed by 12/31/2017 for the solo K to be considered established. So looks like SEP IRA is the fall back.

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