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Hi, client has W2 income where he contributed $14K pre-tax and about $50K schedule C income. When I check the max to contribute to solo 401K in Proseries Basic it says $31K. It seems like 1. it's not accounting for the $14K contribution on the W2 income and also the fact that it's past 4/15. If I'm not mistaken, he can contribute employer portion only past the 4/15 deadline which is around $9K?
This is the first year, the account is not yet established. Does the extension allow for retroactive employer contributions?
Thank you!
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Yes, the SECURE Act allows the first-year 401k to retroactively contribute the employer contributions until the due date of the return (including extensions). The employee contributions were due by the unextended due date. See §401(b)(2).
https://www.law.cornell.edu/uscode/text/26/401#b
