Young Curmudgeon Posted July 22, 2021 Share Posted July 22, 2021 An employer is required to fund additional money due to market fluctuations to pay out the final benefits and close a plan. The date of the funding is past the deduction deadline (9/15/20) for the year of plan termination (2019). Can they deduct the contribution for the year it is made even though the plan was not active for that year? I am being told that it's not deductible for 2020 since they do not have a plan for 2020. Here are some example dates: Plan termination date 12/30/19 Tax deadline 9/15/20. Contribution date 11/1/20. Link to comment Share on other sites More sharing options...
Hojo Posted July 22, 2021 Share Posted July 22, 2021 If the plan is not paid out until 2020 then they still have a plan in 2020 even if the plan termination date in the document is 12/31/2019. acm_acm 1 Link to comment Share on other sites More sharing options...
Mike Preston Posted July 22, 2021 Share Posted July 22, 2021 It is deductible. If you don't believe me have an actuary prepare a formal 404(a) valuation. Bill Presson 1 Link to comment Share on other sites More sharing options...
Young Curmudgeon Posted July 26, 2021 Author Share Posted July 26, 2021 Thank you, I believe you. I would not make sense to require a contribution and not allow it to be deductible. My Actuary is who is telling me the contributions would not be deductible for the year they are made. Link to comment Share on other sites More sharing options...
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