401k adoption agreement signed in Dec...

401k adoption agreement signed in December but opened in January

Posted in the 401K Forum

kachal

Tucson, AZ

#1 Feb 20, 2013
I am wondering if someone could give me accurate answer as my Google search turned up empty.

I applied for a solo 401k in late Dec. 2012 and signed the adoption agreement and application was received and accepted by provider in Dec. as well. But account was opened after the the 1st in January 2013.

My question is: Can I still make contributions for 2012? Or, will I get into trouble with the IRS?

Thank you,
Kachal
Hello

Boynton Beach, FL

#2 Apr 5, 2013
Any contributions prior to the effective date would not be qualified and should not be entered into the plan.
kachal

Tucson, AZ

#3 May 21, 2013
Hello wrote:
Any contributions prior to the effective date would not be qualified and should not be entered into the plan.
What would the effective date be in this case?

DNI

Since: Dec 13

Hilliard, OH

#4 Dec 11, 2013
Hello kachal,

One more thing (just to mention), you can not retroactively contribute elective deferrals.

The effective date of the plan would be the date the plan was to go into effect. In the industry many plans are adopted in december but effective in january on a prospective basis.

Most Sincerely,
DNI

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