IRS Extends Contribution Deadline to May 17, 2021 for Self-Directed Solo 401k Year 2020 Contributions for Sole Proprietors and Independent Contractors

On March 17, 2021, the IRS announced the extension of the deadline for individuals to file their year 2020 federal income tax return.  The original due date was April 15, 2021. With the IRS automatic extension, the deadline is now May 17, 2021.  This extension to file later positively impacts solo 401k contributions for sole proprietors and independent contractors who file a Schedule C which is an attachment to the individuals personal Form 1040 tax return.

Slides: 2020 & 2021 Solo 401k Annual Contribution Deadline

Video: https://youtu.be/Yx3ay86xUDk

The solo 401k contribution deadline is generally driven by owner-only business tax return due date filing deadline.  As a result, sole proprietors and independent contractors are automatically granted this extension and do not have to file any extension forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

The solo 401k contribution deadline is generally driven by the self-employed business entity type.  As a result, sole proprietors  and independent contractors are automatically granted this extension and do not have to file any extension forms or call the IRS  to qualify for this automatic federal tax filing and payment relief.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig.” To view the IRS announcement, CLICK HERE, and to view the final Notice 2020-21 VISIT HERE.

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About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

One Comment

  1. Posted May 8, 2021 at 9:07 pm | Permalink

    Hi
    I am 54 years old, married filing taxes jointly with my wife.
    If my LLC business ( with no employees) made a loss in year 2020, can i contribute to my solo 401K account from my life savings.
    If yes, what will be the max contributions.
    Thank you

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