Solo 401k Deadline: Last Chance to Set Up a Solo 401k for 2014
When 2015 is just around the corner, there is one last chance for self-employed business owners and independent contractors to kick start their retirement planning in 2014. The Solo 401k deadline has not passed yet. If you are wondering how to start a Solo 401k that will take effect in 2014, read on to find out why it is not too late to get started.
What most people assume is that it is already too late to open a Solo 401k account for 2014. Others may think that even if the plan can be opened within these last days, the Solo 401k deadline has passed and it is not possible to complete the set up and making contribution for the year. These are the main reasons why investors delay their retirement plan setup even further to the next year. However, these assumptions are not true.
Solo 401k deadline: How to set up a Solo 401k for 2014
The truth is, there is still time to set up a Solo 401k and there is still time to make contribution to the plan for this financial year. The time left, however, is very little and self-employed business owners are encouraged to catch their opportunity before the Solo 401k deadline is truly over.
According to the Solo 401k rules, the Solo 401k plan has to be set up by the end of the year in order to qualify for contribution for that year. That means potential plan holders have until the end of December 31st to make their move. Contact a plan provider as soon as possible to finish the paperwork to set up the plan.
Once the Solo 401k plan is set up, plan holders will have a bit more time to finish their contribution for the year. The IRS allows the Solo 401k plan to receive contribution up to the tax-filing deadline of the next year. This means if you open a Solo 401k plan before the Solo 401k deadline of December 31, you will have a few months to make your contribution for 2014. By opening a Solo 401k plan and making contribution, you can substantially lower your income tax for the year. The contributed amount can also be invested sooner and start earning returns.
Last chance to save on taxes this year
With the Solo 401k plan, the salary deferral contribution can lower the income tax for the plan participants. At the same time, the set up cost of the plan can be claimed as a business expense and count as a tax deductible for the business. Therefore, if you are looking for ways to save on personal and business income tax, start your account before the Solo 401k deadline to take advantage of this tax-saving strategy.
Contact us right away to learn how to start a Solo 401k that takes effect in 2014. Our retirement planning experts can be reached at (949) 228-9394 for urgent requests.
Related Search Terms:
- How to open a Solo 401k 2014
- Solo 401k contribution deadline
- Start a Solo 401k
- Set up a Solo 401k account 2014
- Solo 401k contribution limit 2014
