- The contributions are deposited by your tax return due date (including extensions).
- The Solo 401k plan was established by end of previous year.
- The contributions are treated as received on the last day of the prior year.
- The contribution is documented in writing as having been made for the prior year.
- The contribution is deducted on your tax return for the prior year.
Typically solo 401k contributions are applied in the year that they are made. However, they can be made for the prior year provided the following conditions are satisfied:
Mark Nolan has been active in the 401k and IRA industry for over 18 years. Working as a 401k administrator at Nationwide Insurance Company; then working as a Compliance Officer and Manager at self-directed IRA/401k custodian companies such as Trust Administration Services Corporation (now owned by Equity Trust Company), to IRA Services Trust company. Mark is currently the Compliance Manager at MySolo401k.Net.