elective deferals for partners

[Guest trojaninvestor]

In a 401k plan what is the timing of elective deferals for the partners?

[Guest Robin.Wolf]

Under old rules (1991?), a partner's compensation for a partnership's taxable year ending with or within a plan year was not considered to be available until the due date (including extensions) for filing the partnership's tax return for the taxable year ending with or within that plan year.

Under the current rules, a partner's compensation is considered to be available on the last day of the partnership taxable year. So, a partner's 401(k) election must be made before the close of the partnership taxable year and must pertain to the plan year including the last day of the partnership tax year. My understanding is that, for calendar year plans with calendar year partnership fiscal years, the election must be made by the end of December.

[mbozek]

Are you asking when the election to defer must be made by the partner (12/31) or when the deferred amount must be contributed to the plan by the p'ship (which can be as late as the date the p'ship tax return is filed)?