Why is 1099 for calendar year of 2022, when you can make contributions up until 4/2023?

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chudat
Posts: 31
Joined: Tue Dec 18, 2018 10:38 am

Why is 1099 for calendar year of 2022, when you can make contributions up until 4/2023?

Post by chudat »

So my work just sent out the 1099NEC for tax year 2022 for amt of 15K.

But from now until 4/23, I can still make contribution to my I401k until the limit. Assume I am still getting paid from work from now until 4/23, how does the tax filing work then?

If say, I contribute 66k to my I401K from now until tax dateline for the 2022 year, when the 1099NEC work sent out was only 15K?
pizzy
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Joined: Tue Jun 02, 2020 6:59 pm

Re: Why is 1099 for calendar year of 2022, when you can make contributions up until 4/2023?

Post by pizzy »

The contribution you can make up until April 2023 is based on the income from 1/1/22 through 12/31/22.

Any compensation from 1/1/23 forward does not impact the contribution maximum for Tax Year 2022.
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an_asker
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Joined: Thu Jun 27, 2013 2:15 pm

Re: Why is 1099 for calendar year of 2022, when you can make contributions up until 4/2023?

Post by an_asker »

I don't have an I401k, so have no idea. But I would be interested to know how/if one can contribute to a previous year's 401k!
toddthebod
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Joined: Wed May 18, 2022 12:42 pm

Re: Why is 1099 for calendar year of 2022, when you can make contributions up until 4/2023?

Post by toddthebod »

chudat wrote: Tue Feb 07, 2023 9:06 am So my work just sent out the 1099NEC for tax year 2022 for amt of 15K.

But from now until 4/23, I can still make contribution to my I401k until the limit. Assume I am still getting paid from work from now until 4/23, how does the tax filing work then?

If say, I contribute 66k to my I401K from now until tax dateline for the 2022 year, when the 1099NEC work sent out was only 15K?
The income between 1/1/2023 and 4/15/2023 is 2023 income, and it does not have anything to do with your 1099-NEC or 401(k) contributions for 2022.

You need to make the contribution before you file your taxes, so you know how much you owe.

You cannot make a $66,000 contribution with only $15,000 of income.
Backtests without cash flows are meaningless. Returns without dividends are lies.
CFM300
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Joined: Sat Oct 27, 2007 5:13 am

Re: Why is 1099 for calendar year of 2022, when you can make contributions up until 4/2023?

Post by CFM300 »

chudat wrote: Tue Feb 07, 2023 9:06 am But from now until 4/23, I can still make contribution to my I401k until the limit. Assume I am still getting paid from work from now until 4/23, how does the tax filing work then?
When you make your solo 401(k) contribution, you will designate the tax year to which the contribution applies. You may make a contribution in 2023, but designate it as being a contribution for tax year 2022. If your SE earnings in 2022 were $15K, that sets the limit for your 2022 solo 401(k) contribution. Earnings in 2023 will set the limit for 2023 contributions. Does that help?
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