If you set up your Solo 401k plan near the end of the year, there are two things you must to so your plan is qualified:
Complete your 401k plan docusign
Formally elect your Solo 401k Contributions
Complete your 401k plan docusign
The IRS closes the last week of the calendar year. During this time, we can't get a new EIN for yoru 401k trust but we can still prepare your 401k plan documents.
If you submitted your Solo 401k plan application during the IRS planned closure (last week of the year), you'll see 11-111111 listed as the trust tax ID number temporarily. We'll have a tax ID number for your new 401k trust just after the new year.
You have until tax day to deposit contributions into your Solo 401 plan.
Having your plan documents from us is what makes you qualified for the current tax year, even if we haven't yet obtained your 401k trust tax ID number. We will obtain your new Solo 401k tax ID number when the IRS reopens.
If contributions are your main objective for having the plan open in 2023, you'll need to complete a contribution form (that we will provide)so you can make your formal election to contribute.
After you complete the contribution form, store it in a safe place with your signed 401k plan signature pages. You may send a copy to your CPA and/or tax advisor. You do not need to send anything to Nabers Group.
When the IRS reopens, we'll get your Solo 401k tax ID number, Then you can then open a bank or brokerage account to deposit 401k trust funds.
Formally elect your Solo 401k Contributions
If contributions are the main objective for establishing the plan, complete a contribution form to make a formal election to contribute. You have until tax day to deposit contributions.
Complete a contribution form to document your contributions
If contributions are the main objective for establishing the plan, complete a contribution form to make a formal election to contribute. You have until tax day to deposit contributions.
For Sole Proprietors, you have until April 18th or October 15th, if you file an extension. For entities (LLC, S-corp, C-corp) you have until March 15th or September 15th, if you file an extension.
After you e-sign the contribution form, store it in a safe place. You can upload the completed form to your Solo 401k dashboard. You may send a copy to your CPA and/or tax advisor. You do not need to send anything to Nabers Group.
According to the IRS, formally electing your contributions should be done by December 31st, but you have until you file your tax return to deposit funds. Please refer to IRS publication 560, and view the chart on page 3. The Solo 401k is a "defined contribution" plan.
