Solo 401(k) Plan must be established prior to December 31 2013 to be eligible for 2013 taxable year
IRA Financial Group, the leading provider of “checkbook control” self-directed IRA and solo 401(k) plan solutions, announces a new year-end solo 401(k) plan deadline expediting service for all new individual 401(k) Plan clients seeking to establish a plan for the 2013 taxable year. In order to make employee deferral and employer profit sharing contributions to a 401(k) qualified retirement plan, the plan must be established in the tax year for which the contribution will relate. Thus, if one wishes to make a tax-deductible or Roth 401(k) plan contribution for the 2013 taxable year, the self-directed solo 401(k) plan must be established by December 31, 2013. “In order to accommodate the enormous demand from self-employed individuals and small business owners for our self-directed solo 401(k) Plan, IRA Financial Group has expanded its services with a deadline expediting service, “ stated Susan Glass, a 401(k) plan tax specialist with the IRA Financial Group. “IRA Financial Group guarantees that any individual seeking to adopt a solo 401(k) Plan as late as December 31, 2013 for the 2013 taxable year, will have their plan established in time to take make 2013 plan contributions, “ stated Ms. Glass.
In general, the deadline for making Solo 401K Plan contributions is typically dependent on the type of entity that has adopted the Solo 401(k) Plan as well as the type of contribution – employee deferral vs. profit sharing contribution.
The annual Solo 401k contribution consists of 2 parts, an employee salary deferral contribution and an employer profit sharing contribution. In 2012 the total contribution limit for a Solo 401k is $50,000 or $55,500 if age 50 or older. The total allowable contribution limits are combined to get the maximum solo 401(k) Plan contribution limit.
Under the 2013 new Solo 401k rules, a plan participant under the age of 50 can make a maximum employee deferral contribution in the amount of $17,500. That amount can be made in pre-tax or after-tax (Roth). On the profit sharing side, the business can make a 25% (20% in the case of a sole proprietorship or single member LLC) profit sharing contribution up to a combined maximum, including the employee deferral, of $51,000.
For plan participants over the age of 50, an individual can make a maximum employee deferral contribution in the amount of $23,000. That amount can be made in pre-tax or after-tax (Roth). On the profit sharing side, the business can make a 25% (20% in the case of a sole proprietorship or single member LLC) profit sharing contribution up to a combined maximum, including the employee deferral, of $56,500.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading self-directed solo 401k plan provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.