Difference between Solo 401k Dec. Adoption and Contribution Deadline

Don't confuse the solo 401k plan set up/adoption deadline with the solo 401k contribution deadline.  For this year, the the solo 401k set up deadline is December 31, 2015. However, the solo 401k contribution deadline, which is based on the business tax return filing due date, is not until 2016.

In other words, as long as the solo 401k is adopted (the solo 401k trust documents are signed) by December 31, 2015, the business owner can take his or her time in making the 2015 solo 401k contribution as he or she will have until their year 2016 self-employed business tax return due date plus any timely filed extensions to make both the employee and employer contributions. For more on this, see the chart found on page 3 of.

When looking at the chart, see the row labeled “Defined Contribution Plan”. A solo 401k plan falls under the defined contribution category. 

For more information about the solo 401k contribution funding deadline .