As Roth 401k including Roth solo 401k contributions have greatly increased over the past 5 years, a common question that arises is when does the 5 (five) year holding period commence so that qualified Roth solo 401k contributions can be made. Compliance Note: the following two requirements must be satisfied in order for a Roth […]
I have a single member LLC taxed as a sole proprietor. I have been contributing to a SEP IRA and have already filed my 1040 for 2021. I just learned I can do a Solo 401k in an LLC. Am I correct in thinking that I can establish a Solo 401k for 2022, fund it in 2023 before my 1040 is due (with extension), and fund it 100% with after-tax contributions up to $67,500? My Schedule C Line 31 will be over that amount and I over 50 years of age.
Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs. Self-employed 401k FAQ: Which Solo 401k contributions function to lower my income? I ask because I want to keep my income below the threshold for the 199a tax deduction. The threshold issue is that […]
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