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Different Corp Fiscal Year from Plan Year


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Posted

Stan P/S Plan. Corp has 4/25 fiscal year. Plan is 12/31. Corp makes deduction for corp fiscal year 4/25/04 in July, 2004 for the Plan Yr ending 12-31 04 (per Code Sec. 404(a)(3)).

Plan uses fiscal year for compensation. May a date other than 12/31/04 be used as the allocation date (such as corp fiscal year-end of 4/25/04, or 12/31/03)?

The question arises because the client does not want to wait for 6 months to make the allocation.

Posted

Probably governed by definitions already in the plan.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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