We have a client that filed their corporate tax return for 2008 in late January, 2009. When the valuation and Form 5500 were delivered to them today, they informed our office that they have not funded their 2008 SHNE contribution yet. I know that they have until the filing deadline date to fund, but since we are already past 3/15/09, what are the ramifications for not funding by then? I'm reading up on 404(a)(6), but thought I would pick some brains here before I spend hours reseaching. The client wants an answer today, of course! Thanks for any guidance on this. It's never come up before in 20+ years of admin work.

If no extension was filed, here is what I think IMNTBHO

1. Deductible in 09 if paid in 09

2. counts toward 09 415 limits

3. EPCRRS 2008-50 tells how to turn yourself in and get a no action letter.

What do others think?

Did they include the SHNE as an expense on the return? If yes, then it sounds like they'd have to file an amended return removing that contribution. Contribution must be funded by the last day of the next plan year, in this case they have until 12/31/2009 to fund the contribution (if funded after 3/15, then deductible in current year).

This is what I recall being the correct deadlines.