Setting Up A Solo 401(k)?
There Are REAL Benefits To Establishing It Before 12/31/21!
The Setting Every Community Up for Retirement Enhancement (SECURE) Act delayed the deadline for establishing a qualified retirement plan for a particular tax year. Businesses now have until their tax return due date, plus extensions, to adopt a plan. Nonetheless, generally speaking, the delay only applies to the ability to make employer contributions (e.g., a profit-sharing contribution) for the prior year – NOT employee salary deferrals – thereby limiting its benefit to the business owner. Read More »
Is There A Target On That Plan’s Back?
The IRS Announces New Audit Focus on Solo 401(K) Plans
If you have clients whose businesses sponsor a solo 401(k) plan, it may be in the crosshairs of the Internal Revenue Service. The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives for fiscal year 2021. In its web posting announcing the initiative, TE/GE states: “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations.” Read more from the IRS here.
Some common pitfalls to be aware of may include: Read More »
