You formally elect to defer and contribute by taking the action to authorize the additional funds to your Solo 401(k). Formal election simply means you are documenting that you plan to make elective deferrals into your plan, and are documenting how much you plan to contribute. These plans have the same rules and requirements as any other 401(k) plan.
As long as your Solo 401(k) was setup before December 31st, you may make contributions as an “employer” for the previous year until the IRS tax deadline.
Contribution Limits:
The 401(k) contribution limit for 2021 is $19,500. For 2022, this amount has been increased to $20,500. For both 2021 and 2022, if you are age 50 or over, you can contribute an additional $6,500.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
