Bonus compensation after PYE

[Guest ABCI]

C corp pays bonus after PYE for calendar year plan. Document allows deferral of bonus. Sponsor is trying to treat deferral in March 2006 as 2005 deferral amount. Need a reg cite to convince his accountant he cannot do this. If bonus is paid and reported as W2 in 2006 associated deferral has to be 2006 and count against 2006 402(g).

[Kevin C]

I was hoping one of the experts would respond, since I'd like to follow the discussion, too.

Does your document allow bonuses paid within 2.5 months after the plan year end to be deferred in the prior year? If not, you can point them to the plan document and 1.401(k)-2(a)(4)(i)(B)(2).