What's the date and time deadline for opening a solo 401k? Can I set one up right before midnight?

Wait does that mean I could technically open the account on Dec 31 but not actually fund it until April? I've been stressing about moving money around before year-end too.

Follow up question - what if my paperwork isn't "processed" until next week? Like if I submit everything online tonight but the company doesn't review it until January? Does it still count as established?

Yes, you can open the account by December 31st and then fund it later. For employee contributions (the elective deferrals up to $20,500 for 2022), you have until your tax filing deadline, typically April 15th of the following year. For employer contributions, you have until your business tax filing deadline, which could be even later if you file extensions. For your question about processing time, what matters is when you submit the completed paperwork, not when the company processes it. Most financial institutions will use the submission timestamp as the establishment date. However, I recommend taking screenshots or saving confirmation emails from tonight's submission as proof of the date in case any questions come up later. The key is that you've done everything within your power to establish the account before the deadline.

Does it work for other retirement accounts too? Like SEP IRAs and stuff? I'm still figuring out which is best for my situation.

I'm skeptical of tools like this. How does it know all the specific rules for different providers? Some have their own internal deadlines that are earlier than the IRS deadlines.

Yes, it absolutely works for other retirement accounts too! It covers SEP IRAs, traditional IRAs, Roth IRAs, and SIMPLE IRAs in addition to solo 401ks. It actually helps you compare which would be most advantageous based on your specific income and tax situation. Regarding provider-specific rules, that's actually one of the best features. It has a database of major financial institutions and their specific requirements. You can select your provider (or potential providers you're considering), and it will flag any special deadlines or requirements they have beyond the IRS rules. For example, it warned me that Vanguard often takes 5-7 business days to process paperwork, so even though the IRS deadline is Dec 31, I should submit by mid-December to be safe.

Wait, how exactly does this work? They somehow get you through the IRS phone tree faster? That sounds too good to be true.

This sounds like a complete scam. Nobody can magically get you through to the IRS faster than anyone else. They're probably just charging you for something you can do yourself for free.

It's actually legitimately how it works - they use an automated system that navigates the IRS phone tree and waits on hold for you. When they reach a live agent, they call your phone and connect you directly. It saved me hours of hold time. Regarding whether it's worth the cost - I can tell you that after spending multiple days trying to get through on my own and failing, getting the exact information I needed within 20 minutes was absolutely worth it. The IRS agent confirmed that my solo 401k would be considered established once I submitted the application, even if the processing continued into January. That peace of mind was invaluable since I was cutting it so close to the deadline.

Shoot I didn't even think about that! I was planning to go with Schwab. Does anyone know how long they typically take to process?

With Schwab, you're cutting it close but might still be okay. Last I checked, they can typically establish a solo 401k within 1-2 business days if all your paperwork is complete and accurate. I'd recommend calling them directly ASAP though - their customer service can tell you exactly what you need and might even be able to expedite the process if you explain the deadline situation. One important thing: make sure you have your EIN ready! If you don't already have an Employer Identification Number from the IRS for your business, you'll need that before opening a solo 401k. That's another process that could add time.

This is great information but I'm still a bit confused. So if I just get the paperwork submitted tonight, I'm good? And then I can actually fund it later? Does the solo 401k need to be with the same bank where I have my business checking account?