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When is Contribution "Made?"


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Guest ralar
Posted

My client has a 12/31 year end, so does its 401K PSP. An extension for filing the tax return was not filed. Client sent a contribution to the Trustee, and it was received 3/14 (Friday). The check has not yet been deposited to the trust.

When is the contribution "made?" Is is made when the check is sent, when it is received by the Trustee, or when it is deposited into the trust?

Thanks!

Posted

Generally under the mail box rule a contribution is deemed made when mailed. However, I would be concerned that the trustee is still holding the check. If trustee is holding the check at the request of the employer it wouldn't be deductible.

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