Defined Benefit Plan

[Guest kentucky]

Can the maximum deductible contribution to a defined benefit plan for a sole proprietor exceeed the net schedule c or even create an NOL?

If not, is there a future year carryforward?

[Mike Preston]

No. No. No.

Hence, it is better to make the contribution that is deductible before the due date of the tax return (and make sure the due date is before 9/15) and then file by that date (no later than 8/15) then deposit the balance before 9/15. Then you have a chance of using that towards the deductible contribution for the next year even though it counts for the required contribution for the prior year. Kind of mucks up the actuarial valuation as you have two separate asset values, one for 404 and the other for 412, but it beats the alternative.