 Amending MPP for increased contribution after close of PY |
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 Feb 12 2008, 09:20 AM
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#1
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Registered User Group: Registered Posts: 9 Joined: 20-October 04 Member No.: 13,778  |
Sponsor of Money Purchase Pension Plan wants to increase the contribution for the 2007 Plan year (a calendar year). Is there any issue with amending the Plan after the close of the Plan Year to provide for a greater contribution (assuming the contribution is timely made for deduction and funding purposes)?
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Feb 12 2008, 11:11 AM
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#2
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Registered User Group: Sitewide Moderator Posts: 2,411 Joined: 22-August 98 Member No.: 1,246 |
Other than you can't do it? No.
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Feb 12 2008, 12:50 PM
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#3
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Registered User Group: Sitewide Moderator Posts: 1,406 Joined: 23-June 04 Member No.: 13,348 |
I don't believe there's a problem at all. It's a pension plan and may be amended to increase contributions after the end of the year. I don't recall if it's 2 1/2 months or tied to the business tax return...I think it's 2 1/2 months.
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Feb 12 2008, 01:54 PM
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#4
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Registered User Group: Registered Posts: 9 Joined: 20-October 04 Member No.: 13,778 |
QUOTE (QDROphile @ Feb 12 2008, 11:11 AM)  Other than you can't do it? No. QDROphile, Thanks for your response. Why can't it be done? Code section 412(d)(2) (formerly 412©(8)) allows for a retroactive plan amendment if adopted no later than 2-1/2 months after the close of the plan year provided it does not reduce a participant's accrued benefit. I thought there might be an issue as to which year the deduction would apply. |
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Feb 12 2008, 03:41 PM
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#5
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Registered User Group: Sitewide Moderator Posts: 2,411 Joined: 22-August 98 Member No.: 1,246 |
My bad. I had another recent situation in mind and did not give the question adequate separate thought.
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