Nic Pospiech Posted November 30, 2023 Share Posted November 30, 2023 I am taking over a plan that was previously a Solo K. The plan was making deposits after their tax deadline with extensions for a few years. For example. They would fund their 2022 contribution after their tax deadline with extensions - but, not actually extend their taxes. They were provided bad advice by the previous administrator that they had until 9/15 - of any given year to make the previous years contribution. I am not exactly sure how to fix this or what the ramifications might be - as it is all owners money - Solo K. Any thoughts? Link to comment Share on other sites More sharing options...
Bri Posted December 1, 2023 Share Posted December 1, 2023 1. Run? 2. VCP? 3. Do it right going forward and pray they don't get caught? Some accounting tricks might mitigate the problems (count the late deposit as being for "next year" such that maybe only 1-2 years are totally unfixable based on timing) good luck! Luke Bailey 1 Link to comment Share on other sites More sharing options...
truphao Posted December 1, 2023 Share Posted December 1, 2023 with Bri's #3 - put a clause in your engagement agreement that the client idemnifies you for any <2023 issues. Luke Bailey 1 Link to comment Share on other sites More sharing options...
Nic Pospiech Posted December 4, 2023 Author Share Posted December 4, 2023 Haha. Yeah...all the answers I came up with. We can definitely accounting trick the last year. But I think they are a little SOL on the rest. Thanks! Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now