Making 2020 profit sharing contribution now

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liontamer
Posts: 1
Joined: Wed Mar 25, 2020 10:16 pm

Making 2020 profit sharing contribution now

Post by liontamer » Wed Mar 25, 2020 10:34 pm

I have an S-Corp through which I have set up a Solo 401k. My plan is to take the maximum salary deferral, plus contribute 25% of salary as profit sharing in 2020.

My question is: can I contribute the entire 25% profile sharing amount for 2020 today? If so, what's the best way to fix any overpayments that may result from an unanticipated reduction in salary later in the year?

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Cubicle
Posts: 683
Joined: Sun Sep 22, 2019 1:43 am

Re: Making 2020 profit sharing contribution now

Post by Cubicle » Thu Mar 26, 2020 10:07 am

I front load my solo 401k on January 03rd for the past 2 years. But there is a huge risk if I don't make the appropriate amount of money. Fortunately I have been enough over the income needed to qualify for the maximum contribution limit for several years now.

I have only read that undoing contributions is a messy, sometimes impossible, task. I cross my fingers for you that SpiritRider chimes in.
"Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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