The only time Fidelity’s tracking of Solo 401k contributions (by employer/employee and by plan year) matters is when their tracking incorrectly blocks a valid contribution. Fidelity is not allowing OP’s valid plan year 2024 contribution to be deposited because Fidelity coded the Jan. 2024 contribution of 2023 401k withholdings as plan year 2024 rather than plan year 2023. So Fidelity does need to correct their records in order to accept this contribution deposit. If they won’t, OP could make the 2024 plan year contribution in Jan. 2025 and account for it in their own records as a 2024 contribution.
I ran into this with E*TRADE this year. I made my 2023 Solo 401k Roth contribution after 1/31/24 which E*TRADE’s system automatically classifies as a 2024 plan year contribution. When I tried to make a plan year 2024 Roth 401k contribution in 2024, the E*TRADE system would not allow it as it incorrectly said I had exceeded the 2024 IRS limit for Roth employee deferrals. I had to call to have them recode the Jan. 2024 contribution as 2023 so I could deposit the 2024 contribution.
I ran into this with E*TRADE this year. I made my 2023 Solo 401k Roth contribution after 1/31/24 which E*TRADE’s system automatically classifies as a 2024 plan year contribution. When I tried to make a plan year 2024 Roth 401k contribution in 2024, the E*TRADE system would not allow it as it incorrectly said I had exceeded the 2024 IRS limit for Roth employee deferrals. I had to call to have them recode the Jan. 2024 contribution as 2023 so I could deposit the 2024 contribution.
Statistics: Posted by HomeStretch — Sat Dec 07, 2024 7:32 am — Replies 8 — Views 483