What is the Secure Act 2.0 Sole Proprietor Solo 401k setup deadline for 2024 tax year? (April 15th deadline?)

Thanks for the info! I'm in a similar situation. Quick question - does this only apply to Solo 401ks or does it also work for SEP IRAs? And do I need to file any special forms to take advantage of this extension?

The SECURE Act 2.0 provision specifically applies to Solo 401k plans (and other qualified retirement plans), giving sole proprietors and small business owners more time to establish these plans. The extension doesn't change anything for SEP IRAs, which already had the tax filing deadline (including extensions) as their establishment deadline. You don't need to file any special forms to take advantage of this extension - it's simply a change in the deadline. However, you'll still need to complete all the normal paperwork required to establish a Solo 401k with your chosen provider. Make sure your plan documents clearly show you're establishing it for the 2024 tax year even though you're setting it up in 2025.

That sounds helpful, but does it actually handle the Solo 401k provider recommendations? I'm stuck trying to figure out which company to use for my Solo 401k. There are so many options with different fees and investment choices.

I'm a bit skeptical about these AI tools for tax advice. How accurate is it really? I mean, the IRS rules are complicated and change all the time. Does it actually cite the specific parts of the tax code or just give general advice?

It doesn't specifically recommend providers, but it does explain what features to look for based on your specific situation. For example, it helped me understand whether I needed a Roth option, loan provisions, and what investment options would align with my goals. This made it much easier to compare providers on my own. As for accuracy, I was skeptical too at first! But it actually cites the specific sections of the tax code and IRS guidance with direct quotes. For the SECURE Act 2.0 question, it showed me the exact text of Section 317 and explained how it modified the previous rules. You can even ask it follow-up questions if something isn't clear.

Wait, how does this actually work? The IRS phone system is notoriously awful - how can a third-party service get you through faster? Sounds too good to be true honestly.

Yeah right, and I bet it costs an arm and a leg too. The IRS phone system is broken by design - no way some service can magically fix that. I've been trying to get through about a withdrawal issue for months.

It uses some kind of technology that navigates the IRS phone system for you and holds your place in line. When they reach an actual human agent, they connect the call to your phone. I don't understand exactly how the tech works, but it definitely worked for me! It's not magic - you're still dealing with the actual IRS system and real IRS agents. They just handle the waiting and navigating the phone tree part for you. Think of it like hiring someone to stand in a physical line while you do something else more productive with your time.

This gets confusing fast! So if I'm understanding correctly, I can open the account in 2025 for 2024, but I can only do the "employer" part of the contribution, not the "employee" part? How do you even separate those as a sole proprietor when it's just me?

You're right that it gets confusing! As a sole proprietor, you wear two hats - you're both the employee and the employer. The employee contribution is the elective deferral part (up to $23,000 for 2024, or $30,500 if you're 50+). Technically, these decisions should be made before the end of the calendar year since they're supposed to be prospective. The employer contribution is the profit-sharing part where you can contribute up to 25% of your net self-employment income. This part can definitely be made until your tax filing deadline. Some providers are more flexible than others about how they handle the employee deferral part when the plan is established after year-end. That's why it's important to talk directly with potential providers about how they interpret and implement these rules.

I use Fidelity for my Solo 401k and have been happy with them. Their platform is user-friendly and they don't charge setup or annual fees for the basic Solo 401k. They're definitely aware of the SECURE Act 2.0 changes - I spoke with them just last month about setting up a plan for 2024 in early 2025 and they confirmed it was possible. One thing to note: Fidelity's Solo 401k doesn't offer a Roth option or loan provision, so if those features are important to you, you might want to look elsewhere. Vanguard is also good but has a higher minimum investment for some funds.

Thanks for the info! That's super helpful. I don't think I need the Roth option right now, so Fidelity might work well. Did you find their customer service helpful with the setup process? And did they have any special requirements for documenting that you were establishing the plan for the previous tax year?

I can share my experience with Fidelity's customer service - they were actually quite knowledgeable about the SECURE Act 2.0 changes when I called them. The rep I spoke with walked me through the entire process and confirmed that I could establish a Solo 401k for 2024 even though we were already in 2025. As for documentation, they didn't require anything special beyond the normal Solo 401k application. Just make sure when you're filling out the forms that you clearly indicate the plan year as 2024. The key is being explicit about which tax year you're establishing the plan for. Fidelity's online application has a specific field for this, so it's pretty straightforward. Their customer service was responsive - I didn't have to wait too long to get through, and the rep seemed well-trained on retirement plan rules. Much better experience than I expected!