When do S corp distributions need to be paid to the plan to be included in plan year allocations?

[Guest ladycpa]

I have a client who will be paying S corp earnings distributions and the ESOP will receive it's pro rata share of these. The client's tax year and plan year are both calendar year end. They want to know if they have to deposit by the 3/15 tax deadline in order for us to include these in the 12/31/04 plan year end allocations. I don't think so because they are not deductible to the S Corp like a contribution would be so I'm sure that they need to be there by that deadline. Any feedback would be appreciated!

Thanks

[stephen]

There is not a requirement to deposit by 3/15.

[Ron Snyder]

If the plan is on an accrual basis, it should include all receivables as of 12-31. Otherwise, the distributions would not be counted until received.