Seeking the guidance of the community because sadly you may be more knowledgeable than my CPA. Perhaps that means I need a new CPA but they all seem somewhat flawed. Anyway, I have a S Corp and I’m the only employee. My CPA runs a quarterly payroll for me. For rough numbers I made $100k in 2024 split by half into w2 employee pay and half as business profit. I opened a solo 401k last year (2024) via Schwab but didn’t fund it. Now in January 2025? I know I have until I file to do the employer side contribution (25% of 50k = $12,500). My question is: is there still a way to do the EMPLOYEE max of $23,000? My CPA said it’s ok because he has until the end of January to revise my w2 so he will just update the w2 to reflect that I contributed 23,000 as an employee and that next week I should contribute $35,500 to my solo 401k on Schwab (representing 12.5k employer and 23k employee). This sounds great to me but I want to confirm it’s allowed. I’ve done a lot of reading that 12/31/24 is the cutoff for employee contributions. Obviously there’s also rules and in reality what the IRS won’t care about so I’d love all perspectives there too. Thank you!
Statistics: Posted by bambambigelow — Sat Jan 18, 2025 4:49 pm — Replies 2 — Views 75