Contribution Reminders for IRA LLCs & Solo 401(k)s
By Jordan Sheppherd
April 15th is fast approaching, and for many of you its time to start thinking about making last year’s contribution. Here is a breakdown of the contribution deadlines for IRA LLCs & Solo 401(k)s:
Because April 15th falls on a Sunday this year, the filing deadline has been extended to April 17th.
You have until April 17, 2018 to make your 2017 IRA contribution. Contribution limits are $5,500 if you’re under 50 years old and $6,500 if you’re over 50 years old.
You have until April 17th, 2018 to make your 2017 SEP IRA contribution. However, if you’ve filed an extension, you have until October 15, 2018 to make your 2017 contribution.
Contributions to a Solo 401(k) take two forms: employee contributions and employer contributions (profit-sharing).
Contribution deadlines depend on what type of business entity you have that sponsors the 401(k) plan.
If your business is a sole proprietorship, LLC, Partnership or any other flow-through entity, you have until April 17, 2018 to make your employee and employer contributions. If you’re filing an extension, you’ll have until October 15, 2018 to make those contributions.
If your business is a S-Corporation, C-Corporation, or an LLC taxed as a Corporation, your employee contributions must have been made by December 31, 2017. However, your profit-sharing contribution is due on the date of your business entity’s filing deadline, including extensions.
Here’s a link to a page that goes through the contribution deadlines in more detail for Solo 401(k)s.