Do you want to make Solo 401k contributions for 2019 but you missed the Solo 401k deadline by failing to establish the plan by December 31, 2019?
No Worries! There is a workaround that will allow you to make retirement plan contributions & reduce your taxable income for 2019.
This strategy takes advantages of differences in the deadlines to establish IRA accounts and a Solo 401k for 2019. While you would have needed to establish a Solo 401k by December 31, 2019 in order to make contributions for 2019, you still have time to establish and make 2019 contributions to a Traditional IRA and/or SEP IRA.
By taking the following steps you can still make 2019 contributions even if you missed the Dec. 31st deadline:
Solo 401k Contribution Deadline “Workaround”
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Step 1 – Open a Solo 401k
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Step 2 – Open a traditional and/or SEP IRA at the financial institution of your choice and make your 2019 contribution before the deadline.
- Traditional IRA: You may be able to contribute up to $5,500 (or $6,500 if you’re age 50 or older) on or before April 15, 2020. Click HERE for more information regarding contribution limits and deadlines for Traditional IRA accounts.
- SEP IRA: You may be able to contribute up $56,000 for 2019 on or before the due date of the federal tax return for your business (including a timely filed extension). Click HERE for more information regarding contribution limits and deadlines for SEP IRA accounts.
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Step 3 – Rollover funds from your Traditional and/or SEP IRA account to your new Solo 401k.
- The My Solo 401k Financial team will handle the transfer process as part of our services for no additional charge.
Please contact us at (800) 489-7571 or [email protected] to get started.
