When do the profit sharing contributions have to be deposited by?For a plan year that runs from 6/1/02 through 5/31/03?

[Jilliandiz]

I have a profit sharing plan that runs from 6/1/02 through 5/31/03? Therefore, I think it would be safe to say, the 5500 is for 2002. When do the employer profit sharing contributions have to be deposited by?

[E as in ERISA]

What is the employer's tax year?

[mbozek]

For deducton purposes the contributions must be made no later than 9 1/2 months after the end of the employer tax year, assuming that the employer has filed for extensions. Rev. rule 76-28. Eg. if the er tax year ends on 12/31/02, the employer contributions for the 02 tax year must be contributed by 10/15/03 in order to be deducted for 02.

[Mike Preston]

The timeframe for deposit is before the due date of the tax return. This is typically 8 and 1/2 months after the end of the fiscal year, not 9 and 1/2 months. Of course, it depends on the entity. If a coporation, then 8 and 1/2 months is correct. If a sole proprietor or a partnership, where appropriate extensions have been filed, then 9 and 1/2 months is correct.

The original question wasn't asking about deductions, though.

However, in addition to the question Katherine asked, we need to know the limitation year of the plan, too, in order to give a correct answer.

Typically, the only limitations on deposit (without concern for which year amounts are deducted in) is the impact of the 415 limits. That can be tricky in the case of a plan with a limitation year that doesn't correspond to the plan year. It can also be tricky if the fiscal year doesn't correspond to the limitation year, whether or not the limitation year is the same as the plan year.

[Jilliandiz]

The tax year is 12/31

[Mike Preston]

404(a)(6) says it is deductible on the 12/31/2002 tax return if it is contributed by the extended due date (which would be 9/15/03 if a corporation and on extension, or 10/15/2003 if a sole proprietor or partnership on extension) as long as it is treated by the plan as having been contributed on 12/31/2002.

Hence, there is no question that a contribution made up through the due date of the tax return can be deducted on that tax return just as if the funds had been contributed on 12/31/2002.