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Last day to contribute to i401k for 2020?
Old 01-25-2021, 06:14 PM   #1
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Last day to contribute to i401k for 2020?

My current understanding is that the last day for a 2020 employer contribution to an existing i401k would be September or October 15th 2021 (depending on biz type and assuming extension filed) and that the last day for an employee contribution would be October 15 2021 (assuming extension filed).

Is this accurate? Possible to file in September / October but make employer / employee contributions up until end December 2021?
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Old 01-25-2021, 07:19 PM   #2
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Here's what I found. Looks like the employee contribution had to be made on or before Dec 31, 2020 and the employer contribution must be made before the applicable tax filing deadline. YMMV.

Quote:
To set up a solo 401(k), you just complete an application to open one with a financial institution, says Todd Youngdahl, a certified financial planner in Falls Church, Va. Most large investment firms have such accounts available for business owners, he says. You can invest the money in mutual funds, certificates of deposit or other investments offered by the plan provider.

Employee contributions generally must be made by the end of the calendar year, but you have until the tax-filing deadline to make employer contributions. ...
Quote:
According to Solo 401k contribution deadline rules, plan participants must formally elect to make an employee deferral contribution by Dec. 31. However, the actual contribution can be made up until the personal tax-filing deadline (April 15, or October 15 if an extension was filed).
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Old 01-25-2021, 07:36 PM   #3
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Originally Posted by pb4uski View Post
Here's what I found. Looks like the employee contribution had to be made on or before Dec 31, 2020 and the employer contribution must be made before the applicable tax filing deadline. YMMV.
I found this info on the IRS site - https://www.irs.gov/publications/p560

"Qualified Plan - Last Date for Contribution - Elective deferral: Due date of employer's return (including extensions)."

Does that mean that if the last day to file my business taxes for 2020 (including extensions) is Sept 15, 2021 that all my employer *and* employee contributions will need to be completed by this date even if my personal return (including extensions) isn't due until Oct 15, 2021?
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Old 01-26-2021, 12:22 AM   #4
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Have you asked you plan's administrator?
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Old 01-26-2021, 12:28 AM   #5
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I have a solo 401K (non-corporate), and (as I recall, and see on the website) have made employee contributions just prior to filing my April tax return for the previous year.

After all, only when doing my return do I have an exact number to use.

This website says the same thing for both employee and employer contributions:
https://directedira.com/2020_solo401...%20Example.%20

This site says the same thing, but a quick read makes me thing a person can set up a plan prior to tax filing for the previous year:
https://www.broadfinancial.com/solo-...020-deadlines/
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Old 01-26-2021, 05:49 AM   #6
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Originally Posted by pb4uski View Post
Have you asked you plan's administrator?
I am my plans administrator and the plan is setup through Vanguard.
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Old 01-26-2021, 07:19 AM   #7
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Have you asked Vanguard?
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