What's the date and time deadline for opening a solo 401k? Do I have until midnight?

I'm totally stressing right now because I just realized I need to open a solo 401k account but I've been procrastinating all year. Would it be ok if I opened a solo 401k account before midnight tonight and initiated a transfer before midnight? I have self-employment income from freelance work I've been doing on the side all year, but my main job has a 401k already. I'm not sure if that matters. I read somewhere that the deadline is December 31st, but does that mean I have until 11:59pm tonight to get everything set up? I have funds ready to transfer but I'm worried the brokerage won't process it in time. Anyone know if I'm already too late or if I can still make this happen? Thanks for any help, I'm freaking out a bit!

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21 comments

Layla Sanders

•8M

You're right to be concerned about the timing. For a solo 401k, the account must be ESTABLISHED by December 31st of the tax year, but you don't need to fund it by then. What matters is that the paperwork is submitted and the account is officially set up before the year ends. If you can complete the application process online tonight before midnight, you should be fine for establishing the account. However, keep in mind that some brokerages might have their own internal deadlines that could be earlier than the calendar deadline. As for funding, you actually have until your tax filing deadline (including extensions) to make contributions for the previous year. So while you need to establish the account today, you don't need to worry about transferring funds immediately. Regarding your other 401k, that could affect your total contribution limits, but doesn't prevent you from opening a solo 401k for your self-employment income.

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Layla Sanders

•8M

There's nothing suspicious about establishing the account today and funding it later - that's completely normal and how the rules are designed. Many business owners establish their plans at year-end and fund them the following year. "Established" generally means the completed application has been submitted to the provider, not necessarily that it's been fully processed or approved. However, different providers may have their own definitions, so it's best to confirm with your specific brokerage. Make sure you get some kind of confirmation or receipt showing the date you submitted your application.

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Kaylee Cook

•8M

After stressing about this same deadline last year, I found an amazing solution through taxr.ai that saved me tons of time and worry. I was confused about solo 401k deadlines and contribution limits with my situation (had both W-2 and 1099 income), and the conflicting advice online made it worse. I uploaded my income documents to https://taxr.ai and got a personalized analysis that showed me exactly what I needed to do. They confirmed I only needed to ESTABLISH the account by Dec 31, not fund it. They also calculated my exact contribution limits considering my other retirement accounts. The best part was getting clear instructions specific to my situation rather than general advice that might not apply.

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Kaylee Cook

•8M

I got my analysis back within a couple hours, so you should definitely have time if you do it now. They prioritize urgent tax deadlines from what I understand. They don't connect directly with brokerages to set up the account for you, but they provide specific instructions for your situation including which forms you need and what to watch for. In my case, they even provided a checklist for my specific brokerage (Fidelity) since they knew their process. You still have to do the application yourself, but with much clearer guidance than the general advice online.

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Lara Woods

•8M

Just wanted to update that I took the advice and used taxr.ai last night! I was skeptical at first but desperate since I was racing against the deadline. I uploaded my income docs and they confirmed that I qualify for a solo 401k and exactly how much I could contribute despite having another 401k through my day job. They even warned me about a specific section on the Vanguard application that trips people up (the part about plan effective date) and told me exactly what to enter. I got my account established with confirmation at 11:42pm! Cutting it close but it worked. They also explained I can make my actual contributions anytime before I file taxes. Saved me from making some stressful mistakes.

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Adrian Hughes

•8M

If you're still having trouble getting through to your brokerage customer service (which is common this time of year with everyone rushing to meet deadlines), I'd recommend using Claimyr. I was in a similar situation last year trying to open a solo 401k on December 31st, but couldn't get through to Fidelity to confirm some details about their process. After waiting on hold for over an hour, I tried https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically hold your place in the phone queue and call you back when a representative is about to answer. I got my questions answered with plenty of time to submit my application. Super helpful when racing against a tax deadline like this!

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Adrian Hughes

•8M

They don't just dial the number for you - their system actually navigates the phone menu and waits on hold in your place. They use technology that monitors the hold queue, and when a representative is about to pick up, they call you and connect you directly to that rep. It's not about skipping the line, it's about not having to personally wait on hold. I was skeptical too at first, but it's really not magic - just smart technology. These financial institutions aren't deliberately making systems confusing, they're just understaffed, especially at year-end. This service just handles the hold time so you can do other things while waiting. I was able to work on other parts of my application while their system held my place in line.

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Ian Armstrong

•8M

I need to admit I was wrong about Claimyr. After posting that skeptical comment yesterday, I was still struggling to get through to Vanguard about my solo 401k setup and decided to try it out of desperation. It actually worked exactly as described. I entered my number on their site, they called me back about 40 minutes later and connected me directly to a Vanguard rep. Saved me from sitting on hold during that time. The rep confirmed I just needed to submit the application by midnight, and the funding could happen later. Got my account set up with about 2 hours to spare. Would have been on hold that entire time otherwise.

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Eli Butler

•8M

For anyone still confused about solo 401k deadlines, here's a quick rundown based on my experience setting one up last year: 1) Account ESTABLISHMENT deadline: December 31st of the tax year 2) CONTRIBUTION deadline: Your tax filing deadline (typically April 15, or Oct 15 with extension) 3) What counts as "established": Varies by provider, but generally when application is SUBMITTED 4) Documentation: Keep confirmation of your application submission showing the date The most common mistake is thinking you need to fund it by Dec 31. You don't! Just get the paperwork in. And remember different brokerages have different processes - some can be done entirely online while others require mailed forms.

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Eli Butler

•8M

You don't necessarily need an LLC to open a solo 401k. If you're operating as a sole proprietor and have self-employment income (even without formal business registration), you can establish a solo 401k. The key requirement is having self-employment income during the year. Having said that, you should have some documentation that your business existed before establishing the 401k. This could be as simple as invoices showing you earned income from your side gig before December 31st. The IRS mainly cares that the business was operating during the year you establish the retirement plan.

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