Both account belong to the same small business owned by me and my wife. No employees. Taxed as a partnership in SC.
Filed an extension, so tax return has NOT yet been filed.
All SEP contributions were contributed in 2023, but I planned to deduct on 2022 return.
In late November 2022, I opened a Solo 401k with Fidelity (both accounts are with Fidelity) so that we could contribute more to our retirement. At the time, I was told I could have and contribute to both accounts. Today I was told I can have both account, but cannot contribute to both in the same year.
We have each made the following contributions to our Solo 401-K accounts.
| 11/22/2022 | 1,000.00 | Opening deposit (is this automatically considered 2022 contribution?) |
| 5/1/2023 | 2,000.00 | contribution to 2023 |
| 5/4/2023 | 2,000.00 | contribution to prior year (2022) |
I know the 5/4 contribution was a mistake provided what AI was told today is accurate. I'm unsure if the opening deposit would automatically be considered a 2022 contribution, but logic tells me it would be.
I've not spoken with a financial advisor yet, only Fidelity. I'm told I may be able to file in a way that this isn't an issue. As always, they also tell you they can't give financial advise, but basically what he was saying is if I don't deduct any of the Solo 401k contributions until I file 2023 taxes I should be ok.
I don't think I want to take that chance. I'd rather fix the issue if it indeed is not allowed. Given the fact that we want to move forward with the Solo 401K in the future, I would appreciate any advice as to the simplest way to resolve this issue. It's not a lot of money and it hasn't been in the account long, so the sooner I fix it the better. Also Note: I am in the process of opening both a Solo 401k and a Roth Solo 401k with another broker, as Fidelity does not offer the Roth option.
