Top-Heavy contribution due date when plan year and tax year are differ

[John A]

If a plan is top-heavy for the 2001 calendar year (based on a 12/31/00 determination date), and the plan sponsor's fiscal year ends 8/31, when must the top-heavy contribution be made to avoid needing to use the top-heavy correction mentioned in Revenue Procedure 2001-17?

[Guest earthy]

In general, for a for-profit sponsor of a tax-qualified retirement plan, the contributions would have to be made by the "date" the corporation's federal income tax return is due. For a 12/31 calendar year employer, this would be March 15. A for-profit corporation may also obtain an extension permitting it to file as late as 9.5 months. For a 12/31 calendar year employer that would be 09/15.

For plans subject to Code Section 412 (defined benefit plans and money purchase pension plans), the contributions have to be made within 8.5 months following the end of the plan year to aviod the 10% excise tax under Code Section 4971(a).

Source: Revenue Rulings 66-144 and 76-28.