401k Employee Contribution
Hello-
Client (business owner recorded on Schedule C) set up 401k and Cash Balance Plan this calendar year for 2021. The company that set up the 401k/Cash Balance Plan believes he can still make an employee contribution to the 401k. Is that the case?
Any input would be appreciated. Thank you!
Permalink Submitted by William Tuttle on Tue, 2022-03-08 21:15
A 401k needed to have been adopted and an employee deferral election made by 12/31/21 to make employee deferrals for the 2021 tax year.
However, employer contributions limited to 6% can be made by the tax filing date including extensions if the 401k was adopted by those dates.