Stupid SEP funding question

[MarZDoates]

I know that an employer has until the DUE DATE of his tax return to fund his SEP contributions (including extensions).

However, do we have to HOLD (not file) the tax return until the SEP is funded?

[mbozek]

Under the language of IRC 404(a) and PLRs for qualified plans, as long as the extension is filed the contribution can be made by the expiration of the extension, even if the tax return is filed on the due date. I see no reason for SEP plans to be treated differently since the SEP deduction provison is similar.

[Appleby]

Mbozek’S right.

The contribution can be up to the tax return due date, plus extensions. Either can come first- making the contribution or filing the extension.

[Gary Lesser]

Agreed. See Revenue Ruling 84-18.