Solo 401(k) establish for prior year (S corp) AMENDED RETURN?
Spoke with a business owner last week. S corporation. 350K of income between husband and wife owned business. 50/50 split in ownership.
They filed their tax return in March of 2025 for the prior year.
Does the Secure act 2.0 rule of establishing a Solo 401(k) plan for the prior year up until tax filing deadline apply towards husband wife owned S-Corp? Could the couple amend their tax return and still establish a Solo 401(k) plan for each owner?
Thinking they could each max out at 22,500 plus profit sharing.
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-31 14:55
Sec 317 of Secure 2.0 only applies to sole proprietorships and LLCs taxed as sole proprietors. It does not apply to corporations. Because the plan was not set up by 12/31/2024 with the elective deferrals amounts documented, it is too late for elective deferrals for 2024.
However, the solo K can still be set up by 9/15/2025 for the purpose of making 2024 employer contributions (extension deadline for S Corps), the limit for those being 25% of 2024 W-2 income.