Financial Planning April 15th Tax Filing Deadline Retirement

Note, laws change all the time and this information may be outdated if the contributor didn’t have the time to update it.

No government filings.
Pre-tax
Only employers can contribute.
For sole proprietors, partnerships, corporations, sole shareholders of an S corporation
As of 2020 contributions cannot exceed the lesser of 25% of the employee’s compensation for the year or $57,000.
The participant must be at least 21 years old, have worked for the employer for at least three during the previous five years, have received at least $600 in compensation from the employer during the current year
Specific rules apply
Establish by employer’s tax filing deadline, plus extensions.

Employers must contribute annually.
Employees can contribute $13,500 ($3,000 catch-up contributions) for 2020.
Pre-tax
For small companies with fewer than 100 employees. S-Corp, Solo, Partnerships, C-Corp.
Employers may benefit from the SECURE Act tax credit that can offset setup costs.
Employees may benefit from savers credit (up to $2,000 of contributions each year) if their income is up to certain limits.
Not subject to income tax withholding, but is subject to FICA, FUTA, and RRTA.

$19,500, or $26,000 if age 50 or older (2020 contributions)
Pre-tax
Employer Contribution cannot exceed $57,000 (2020) (limits apply)
Contributions deadlines vary.
Filing deadlines vary.
Solo 401k Contribution Calculation is Based on Business Structure: Solo, partnership, S-Corporation, C-Corporation.

Similar setup as SIMPLE IRA.
File a Form 5500 every year
Pre-tax
Can allow loans from the plan.
For small companies with 100 or fewer employees, sole proprietors, partnerships, C corporations, S corporations
Employee salary deferrals and Employer contributions.
Up to $13,500 in salary deferrals; $16,500 if age 50 or older
Establish by October 1.