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I knew about the "over 25% limit allowance", since I have had experience with that particular problem; which was prompting my position. Specifically, we had one client that HAD a practice of depositing during the year more than the 25% limit. Luckily, that client would listen (eventually) to guidance provided, so we were able to get that practice to stop. Thinking back I do recall that there are aspects of our argument that support Mr. Preston's position, which was how we got that client to stop the "excess advance funding". Since that time I had an argument with an accountant who insisted that you could carry forward the deduction regardless of the 25% limit, who at that time convinced me that you could. I will need to review notes from those conversations. Unfortunately, I do not have the necessary time, and am unsure exactly were those notes are; otherwise I would refer to them now. Until that time I concede the argument, since I have no cite to support my position. Conversely, Mr. Zeller has provided a cite, which clearly indicate that I am wrong in my position. Unless I provide a contrary cite I suggest that matter is fully resolved, and I accept that I am in error. (If I can I will be sure to provide a supporting cite. Unfortunately, in hind site, after review of what I do have, I am pretty sure it does not exist.) Hopefully Mr. Preston will be satisfied with this mea culpa.

Looks like this has already been settled, but thought I'd chime in with some code references. 404(a) says, in more verbose form, that contributions to a plan are not deductible unless they meet the requirements of that section. 404(a)(3)(A)(i) allows the deduction for contributions paid into a profit sharing trust in the taxable year when paid (with (a)(6) providing the deemed timing rule for contributions paid by the due date of the tax return). 404(a)(3)(A)(ii) allows for the carryover of the deduction to following tax years of amounts which were contributed in excess of the 25% limit. I am aware of nothing in the code or regs that would allow the employer to arbitrarily decide to take a deduction in some future year for a contribution paid in the current year.

UR welcome. I seemed to have been having an "off" 2 weeks, I guess.

More than. Thx for taking the time to close the loop.

https://www.nolo.com/legal-encyclopedia/do-i-pay-health-insurance-while-im-fmla-leave.html There are multiple choices -- we ask for a check monthly OR a 1 time upfront if we know how long they are going to be out. Only con of waiting until they come back is if they don't return, it's hard to get those premiums back then. Even if treated as a loan.... We prefer the "pay as you go" to keep up with the amount owed.