Solo 401K contribution limit and deadline - sole prop

[ptax255]

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!

[TaxGuyBill · Accepted solution]

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