Solo 401k employer contribution

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
OneToughPuppy
Posts: 9
Joined: Thu Feb 13, 2020 2:28 pm

Solo 401k employer contribution

Post by OneToughPuppy »

I have a solo/individual 401k at Vanguard and I maxed out the employee contributions. But I won't be able to calculate the exact salary for the employer contribution until after the December 31st deadline. What happens if I go over the 25% employer contribution?
AB609
Posts: 56
Joined: Thu Oct 17, 2019 9:02 am

Re: Solo 401k employer contribution

Post by AB609 »

The deadline for contributions is normally April 15th of the following year (normal tax filing deadline). If it's a new plan, you have to have it established by the end of the year but can still make contributions until the end of the filing deadline.
L1tt1eMinon
Posts: 50
Joined: Sat Nov 17, 2018 12:12 pm

Re: Solo 401k employer contribution

Post by L1tt1eMinon »

I have recently researched and opened a solo 401k in Vanguard as well. As far as I researched there isn’t anything that will monitor your employer contributions. You are your own enforcer. Nothing stopping you from over contributing. Just not good if/when irs decides to check up on you.
AB609
Posts: 56
Joined: Thu Oct 17, 2019 9:02 am

Re: Solo 401k employer contribution

Post by AB609 »

Best bet is to call Vanguard and ask. I had mixed up the employer/employee categories one year and ended up over contributing to the employer category. Vanguard was able to move the funds over to the employee category after the fact.
Post Reply