Can a sole proprietor set up a 401k plan in 2021 for 2021?

Good morning

SECURE Act allows pension plans to be set up in 2021 for 2020.

If a corporation, though can set up a 401k/PS plan for 2020 in 2021, the deferral option has to start in 2021 and after the plan is executed.

How about for a sole-proprietor and/or partnership where there are no employees?

Thank you,

Only pension and profit sharing plans can be set up in a prior year. Not 401(k) plans for anyone.

@Jakyasar remember that while partners and sole proprietors can deposit their deferrals after the end of the year, they still have to make a deferral election in writing before the end of the year. If the plan did not exist in 2020 then I don't see how they could have made a deferral election in 2020.

Thank you both confirming my understanding.

Right. But you could adopt a 401(k)/PSP with only the profit sharing provision effective for 2020.

Agreed with the 401k provisions being effective 2021.