Solo 401k Dates to Remember

Deadline to Establish Solo 401k plan

As per IRS Publication 560, your Solo 401k must be established by December 31st of the given year in order to make contributions to the plan.

The plan doesn’t necessarily have to be funded by the date, but the documents must be executed by December 31st for the plan to be in existence. 

Let’s look at an example: Jamie Fraser has a single-member LLC and wants to open a Solo 401k in order to make tax deductible contributions to lower the amount of taxes he pays, and to save for his future. Jamie established his Solo 401k and signed his plan documents by December 31st. This gives him the freedom and flexibility to wait until he files his taxes for that year to open his 401k trust bank and/or brokerage account and to make his contributions

Contribution Deadline: Sole Proprietorship

If your sponsoring business (adopting employer) is a Sole Proprietorship, you have until April 15th to make your annual Solo 401k contribution , or October 15th if you submit an extension to file your tax return.

The amount so use when calculating your annual contribution for a sole proprietorship is line 31 of Schedule C.

Contribution Deadline: Single-member LLC

If your sponsoring business (adopting employer) is a single member LLC taxed as a sole proprietorship (disregarded entity), you have until April 15th to make your annual Solo 401k contribution , or October 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for an LLC taxed as a disregarded entity is line 31 of Schedule C.

If your single member LLC is taxed as a corporation, you have until March 15th to make your annual Solo 401k contribution , or September 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for a single-member LLC taxed as an S-corp is your W-2 income.

Contribution Deadline: Multi-member LLC

If your sponsoring business (adopting employer) is a multi-member LLC taxed as a partnership, you have until March 15th to make your annual Solo 401k contribution , or September 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for a multi-member LLC taxed as a partnership is line 14 of your K-1 from partnership return 1065.

If your multi member LLC is taxed as a corporation, you have until March 15th to make your annual Solo 401k contribution , or September 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for a single-member LLC taxed as an S-corp is your W-2 income.

Contribution Deadline: Sub-chapter S Corporation

If your sponsoring business (adopting employer) is a sub-chapter S corporation, you have until March 15th to make your annual Solo 401k contribution , or September 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for a single-member LLC taxed as an S-corp is your W-2 income.

Contribution Deadline: C-Corporation

If your sponsoring business (adopting employer) is a sub-chapter S corporation, you have until March 15th to make your annual Solo 401k contribution , or September 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for a single-member LLC taxed as an S-corp is your W-2 income.

Contribution Deadline: Partnership

If your sponsoring business (adopting employer) is a multi-member LLC taxed as a partnership, you have until March 15th to make your annual Solo 401k contribution , or September 15th if you submit an extension to file your tax return. The amount so use when calculating your annual contribution for a multi-member LLC taxed as a partnership is line 14 of your K-1 from partnership return 1065.

Solo 401k Participant Loan Repayment Deadline

You can pay back your Solo 401k participant loan as frequently as you choose. Our software will prepare customized loan documents for you, including a promissory note, loan amortization schedule and monthly loan repayment schedule.

You may make payments as infrequently as quarterly to your Solo 401k participant loan. For more information on loan repayments, please view the Retirement Plan FAQs regarding loans from the IRS.

Solo 401k 5500-EZ Filing Deadline

IRS Form 5500-EZ must be filed by July 31st of each year for the previous calendar year. You only need to file form 5500-EZ if your Solo 401k plan had a total asset value of $250,000 or greater as of December 31st of the previous calendar year. You must also file form 5500-EZ if you closed your Solo 401k plan last year (even if the plan had less than $250k in assets when terminated).

Please see this page on how to file form 5500-EZ for more information.

Solo 401k 1099-R Filing Deadline

Whenever you remove funds from your Solo 401k plan as a distribution, you must report the distribution and file form 1099-R.  You must also file form 1099-R if you perform an in-plan Roth conversion in your Solo 401k. a plan participant or beneficiary takes a distribution from his or her self-directed solo 401k, IRS reporting requirements apply. 1099-R reporting also applies to in-plan Roth 401k conversions. Payers must send a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to the IRS and to the individual receiving the distribution. The form is due to the IRS by February 28.

You must file Copy A of form 1099-R with the IRS by February 28. If you are required to file 1099-R forms electronically, the due date is April 2.

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