I would like to open a solo 401K with Fidelity (I am the only employee) for a consulting business in 2023. I plan to make 2023 contributions that I can apply on my 2023 tax returns. According to Mike Piper, for a sole proprietor, you can set up the individual 401K plan and make contributions for a given year (2023) as late as April 15 of the following year (2024). I'm completing the Fidelity forms but am confused about the effective date of the plan. The Fidelity form states the plan's effective date cannot be earlier than the first day of the current Plan Year, which I assume would be 1/1/24. Should I use the date 1/1/2023? I'm afraid I'll fill the form out incorrectly as I'm not clear how I could make 2023 contributions if the effective date will be 1/1/24. Am I missing something? Thanks for clarifying.
Statistics: Posted by Hulahoop60 — Wed Feb 28, 2024 7:24 pm — Replies 1 — Views 177