pensionam

Thanks for the input. They only have a Profit Sharing only plan. I have reiterated to them on more than one occasion that the deposit should not be made until our office has done the calculation or at least after 12/31 since they don't understand how the calculation works. Very frustrating when a client doesn't listen to your advice, that's for sure!

Thank you so much, I really appreciate the response!

I have a client who has already filed their corporate tax return and is over the 404 limit. I've never ran into this situation before but after doing further research, it appears as though they need to amend their corporate tax return as well as pay a 10% excise tax on the amount they went over by. They are a calendar year plan so the plan year we are working on right now is 2017. Unfortunately, all of the Profit Sharing contribution was deposited in 2017. The part I'm getting hung up on is what happens with the overage. Does it get applied to the 2018 plan year or does it have to be applied to 2017 since although it's over the 404 limit, it wouldn't be over the 415 limit? If it has to be applied to 2017, can they still take the deduction in 2018 since they weren't able to for 2017?