3/31 Fiscal Year End - When is ER contribution due?

[Guest CCarter]

Hi-

I have received conflicting information regarding when an employer contribution is due for a 12/31/01 plan year end with a fiscal year end of 3/31. I have been told (a) September 15, 2002 and (B) whenever the corporate tax is filed. Does anyone know which is the correct answer?

[mbozek]

I thought the rule is that the employer takes the tax deduction for all contributons made during the employers taxable year. The employer has until the date the tax return is due with extensions to make the contribution for amounts accrued during the tax year. A contribution subject to the minimum funding provisions of ERISA (DB and MP plans)must be made no later than 8 1/2 months after the plan year year ends, not when the tax return is due.

[Archimage]

mbozek is correct. Your part B deals strictly with the deduction the company can make for contributions to the Plan as pointed out. The reference is Code Section 404(a)(6).

[Mike Preston]

The issue may revolve around a top-heavy requirement for a non-412 plan, such as a profit sharing plan. Let's assujme that is the case. There seems little doubt here that the contribution for the 12/31/01 TH minimum will be made before the filing of the 3/31/02 tax return, so it will be deductible on the 3/31/02 tax return. Does it have to be contributed before 9/13/02? Nobody really knows. I haven't seen anything, ever, that indicates what the drop-dead final due date is for a top-heavy minimum contribution in this case. Everybody agrees, however, that making the contribution on or before 9/13/02 is going to satisfy all rules, whether they currently exist or not.