Jakyasar Posted August 17, 2021 Share Posted August 17, 2021 Hi A hypothetical question. Company A wants a DB plan starting in 2020 but they have filed their tax return on time without any extension. However, they have lots of monies and want to generate a required contribution for 2020 and deduct for 2021 tax year together with 2021 deduction (assume there is enough room for both under 404(o). What do you think? Thanks Link to comment Share on other sites More sharing options...
C. B. Zeller Posted August 17, 2021 Share Posted August 17, 2021 If they did not extend their tax return for 2020 then it is too late to adopt a plan for 2020. IRC 401(b)(2) references the deadline of the employer's tax return, including extensions. If there was no extension for the tax return then there is no extension for the deadline to adopt a plan. Bill Presson 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Jakyasar Posted August 18, 2021 Author Share Posted August 18, 2021 CB, thank you How about if they extended but already filed\, say in May? Link to comment Share on other sites More sharing options...
C. B. Zeller Posted August 18, 2021 Share Posted August 18, 2021 If they filed and used the extension for their tax return, then the extended due date applies for plan adoption. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Jakyasar Posted August 18, 2021 Author Share Posted August 18, 2021 Agreed and thank you Link to comment Share on other sites More sharing options...
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