Sole proprietor failed to make 2003 contribution to his money purchase plan - consequences?

[Guest Hilarion]

I should add that the sole prop is the only participant in his plan, and that this plan is paired with a profit sharing plan, where he is also the only participant. He says he thought that EGTRRA would let him contribute to the profit sharing plan alone.

Is he still bound by the minimum funding requirement? His plans are not Title I plans - would that have a bearing?

Thanks!

[Ron Snyder]

Why would such a sole prop. still have a MP pension plan? Failure to meet the minimum funding standards is addressed on form 5330 by application of an excise tax.

[Guest Hilarion]

Why would such a sole prop. still have a MP pension plan?

We let all our clients know about EGTRRA and about the possibility of merging plans. Some took action. Most didn't. You can lead a horse to water...