Group:
Client is looking at selling 100% of his S Corp Stock to an ESOP with an adoption date of 12/31/23.
I'm told by cpa that operating Co/plan sponsor is on cash basis.
I've always thought that any retirement plan can be funded and set up and documents drafted for previous year if done by Sept 15th of following year or up until time of filing tax return.
However, given 12/31/23 has passed how does the law allow an adoption date without backdating documents? I note 401ks do this all the time.
Is there a treasury regulation that allows the back dating of documents to memorialize the sale to the esop?
Thank you!