Timing of Deposits for employer with different fye

[MarZDoates]

Employer's fiscal year runs from May 1, 2004 through April 30, 2005. They sponsor a 401(k) plan on a calendar year basis. Plan requires a top heavy contribution. By when must the top heavy contribution be made in order to be deductible for the 2004 plan year? Thanks

[Erik Read]

Hmm - correct me if I'm wrong but deductability pertains to FYE not plan year - right.

Are you asking by what date must the 2004 TH minimum for the plan be deposited by, in order to be deductible during the '04-'05 FYE? Or are you asking for '03-'04 deductions?

Just trying to clarify some, and see if we can get you an answer.

[MarZDoates]

It is my understanding that deductibility pertains to the employer's fiscal year. The contribution is for the plan year ending within the fiscal year end April 05. I think we have until the time when the employer files its tax return for fye 4/05. But not sure.

[mbozek]

See RR 76-28- Contribution is deductible in the employer tax year in which it is made or in the prior tax yr if contributed no later than the date for filing the er's tax return with extension. Plan yr is immaterial for PS plan.