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My client (P.C.) was reading an article that mentions utilizing the PPP loan to fund defined benefit pension contribution

 

"CARES Act 2020: Paycheck Protection Loans as Funding for Defined Benefit Pension Plans Sponsored by Small Businesses"

I don't see anything either in CARES Act or PPP Information Sheet that would lead someone to come to this conclusion

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Where is the article published? Or do you have a link?

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Until we get some regulations, I don't think anyone knows for sure.  The Cares Act didn't specifically exclude defined benefit plans, the question is how much of the contribution can be satisfied with the loan. 

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I think I posted that in another thread.

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The PPP Q&A seemed to indicate it is allowed and Marty Pippins said as much in an article posted on ASPPA site.

Retirement contributions are considered payroll costs and DB contributions were specifically mentioned with DC contributions as not subject to the $100,000 of pay limitation.

What is not clear is whether any and all DBP contributions made during the 8-week post PPP receipt window could count as payroll costs.

As this is quite a gray area absent any more guidance, we suggest if any of our clients are interested in pursuing that they consult their accountant, attorney or both.

One thing that is certain, an unincorporated sole proprietor cannot use PPP top fund retirement.

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Just curious if anyone has seen or heard anything additional on this issue?  We have a client that has come across the same bpas article.  (It's helpful that they include cites to all their reference material, just wish somewhere I could find an express statement supporting their suggestion.)  In this case, I believe there may be "extra" PPP money because of reduced payroll costs (furloughed employees) so thought would be to use all the additional PPP loan amount above current payroll cost to help fund the underfunded DB plan.

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