SOLO 401k PLan for individual-deadline for 2022

Submitted by Vickie Intriago on Wed, 2023-04-19 19:54

Client has a S- Corp. She has no employees. She has SEP but has not contributed in 2022.

CAn she open and fund a SOLO Individual 401k for 2022 and fund the maximum amount of $27,000 since she is over 50?

Or, is it too late to fund the SOLO in 2023?

Thanks!!!!!



Submitted by William Tuttle on Thu, 2023-04-20 04:33

  • An S-Corp one participant 401k would have had to be adopted by 12/31 to make employee deferrals.
  • A written 401k W-2 employee deferral election must have been completed by 12/31.
  • A 401k W-2 employee deferral must have come from compensation not already received with a pay date by 12/31.
    • No S-Corp 2% shareholder-employee deferrals possible for the 2022 tax year.
  • An employer has until their tax filing deadline including extensions to adopt a 401K and make employer contributions.
    • An S-Corp 2022 tax filing extension would have been required by 3/15/23 to adopt a one-participant 401k and make employer contributions by 9/15.
    • An S-Corp 2022 tax filing extension would have been required by 3/15/23 to adopt a SEP IRA and/or make employer contributions by 9/15.

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