Can I make a S corp or llc in April for daytrading, and contribute 59k to a retirement plan to deduct against my personal income from Jan-march? Basically, can a retirement plan be used to write off against personal income made earlier in the year? If I made 300k on my own personal income tax, will I be able to write off 59k retirement contribution from the LLC dropping my income to 241k?
Legally you can opt between calendar year Jan to December or fiscal year covering april. But it will likely require restating prior year. Cpa is the best person to clarify.
please get really good Tax Advisor to help you with this as its not that strait forward....normally Single Member LLC's filing as Disregarded Entity can not pay Salary to teh single member - so no salary - but these types of companies can set up Simplified Employee Pension SEP....and also there is Solo 401(k) so as always when dealing with IRS its best to get GOOD advice....so you can set it up properly and Minimize tax liabilities here are two links to IRS website to give you general flavor https://www.irs.gov/retirement-plans/one-participant-401k-plans https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people also keep in mind there can also be other benefits of setting up proper LLC as you can deduct many expenses as Business Expenses.....maybe parts of your home office....all subscriptions you pay for....all education you pay for etc etc...that is related to Trading.... good luck
My accountant Colin Cody specializes in trader taxes. Here's his link fwiw. https://traderstatus.com/