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Employer contribution deadline for non-profit


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Guest Beachgirl
When is the latest than a non-profit has to make an employer contribution (403(b) Plan) for the 2006 plan year? Is it 3/15 (unextended) like for profits or something else?

Thanks

I ran into that question a few weeks ago. In my case, the plan was a calendar year plan and the employer had a fiscal year. After researching it, here's what I found: Reg. 1.415-7 provides that a contribution shall not be deemed credited to a participant's account for a particular limitation year unless the contributions are actually made to the plan no later than 30 days after the end of the period described in section 404(a)(6) [contribution must be made not later than the time prescribed by law for filing the return for such taxable year (including extensions)] applicable to the taxable year with or within which the particular limitation year ends. If, however, contributions are made by an employer exempt from Federal income tax under section 501(a), the contributions must be made to the plan no later than the 15th day of the sixth calendar month following the close of the taxable year (or fiscal year, if no taxable year) with or within which the particular limation year yends.

Hope that helps.

J

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  • 2 weeks later...

I would add that this reg section only applies for determining which limitation year the contribution falls into. So, for a not for profit with relatively small allocations, it would not really matter if the contributions were made after that deadline. That is because the worst that might happen, as I see it, is that those allocations would be credited to the next limitation year and then if the next year's contributions WERE made within the deadline, you would effectively have doubled up for 415 purposes.

Well, if the amount that you are doubling up is low enough, then you still would not have any 415 issues in most cases.

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