I have a full-time job. I max out my 401(k) at work.
I also occasionally do some side work. The last time I had a significant enough income to worry about was 2004. To wipe out as much liability as possible, I contributed $6,000 (20% of profit) to what I thought was going to be a SEP in April, 2005. This was as a sole proprietor.
I didn't really pay attention to it (FA at the time set it up). However, turns out that my FA set up a Solo 401(k).
In doing some digging I read on Kiplinger.com (SEP vs. Solo 401(k) - Kiplinger.com
) that Solo 401(k)'s have to be established by the end of the calendar year (I'm assuming this isn't a recent change) even though they don't need to be funded until April 15th of the following year. Does this mean that I'm going to have some issues if I'm audited? After all, my Solo wasn't set up until April.
Second question. I don't know when the paperwork was sent in for the Solo but it wasn't established until April 20th. Is the April 15th deadline for funding or mailing? (I assume mailing).
Ok, last and biggest question. I don't like my money where it's at. What are my roll-over choices? If it helps, I need to make a contribution this year as well. It will probably be around $4k. I'm filing this year as a single member LLC.
It looks like Fidelity offers a Solo 401(k) and I would think I could just transfer the account to them. However, would I also be able to roll over to a SEP-IRA at Vanguard? Or, would I be able to roll over to my IRA at Vanguard? I've found plenty of articles about rolling a SEP to a Solo in order to borrow against it, but I've been unsuccessful in finding much.