In the past I've paid in employee contributions each quarter based on how much I've earned.The question is whether you are limited to a contribution based only on the income attributable to the time when the plan is in effect. For some, this might not matter as they can fully contribute based only on half a year’s income. For others, it might significantly reduce the contributions (especially on the employer side) for 2024 and 2025.I thought of doing that, but I like to wait until later in the year so that I know how much I'll make so that I don't break any contribution limits.the one-year waiting period would not be terrible if we make the 2024 contributions before closing the account - say in May 0f 2024, and then open the new solo 401K in June of 2025 and then make the 2025 contribution, am I missing anything here?Yes that's what I understand too. I had thought of just closing the solo 401k, rolling over so the balance is zero, filing the 5500-EZ and opening another, but I'd have to wait a year to open a new solo 401k with someone like Schwab or Fidelity.
My understanding is that you would have to wait a year after closing your current solo 401(k) before opening a new one.
Statistics: Posted by nun — Wed May 01, 2024 8:34 pm — Replies 468 — Views 40394