S corp - Deposit Individual 401K contribution from personal account after transferring from business account

Forum|Forum|5 years ago
December 30, 2020
1 reply
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I need to make an employee contribution to my individual 401k plan by Dec 31 for FY 2020. Due to time constraints I need to do a wire transfer but the bank is charging a fee to do it from my business account. I can't deposit a check to the local branch of 401K plan provider as all the local branches are closed due to COVID-19. Is it OK to transfer the amount first from business account to my personal account and then transfer to the 401K plan via wire transfer? The bank is willing to wave the wire transfer from my personal account due to the level of account.

Thanks much!
Kevin

TurboTax Online

Best answer by Critter-3

According to Solo 401k contribution deadline rules, plan participants must formally elect to make an employee deferral contribution by Dec. 31. However, the actual contribution can be made up until the personal tax-filing deadline (April 15, or October 15 if an extension was filed).

Critter-3

I don't see the problem ... if this is the only way to do it logistically. If the IRS ever asks the method is defendable.

Critter-3Answer

According to Solo 401k contribution deadline rules, plan participants must formally elect to make an employee deferral contribution by Dec. 31. However, the actual contribution can be made up until the personal tax-filing deadline (April 15, or October 15 if an extension was filed).