Discretionary Match & March 15 deadline

[Guest Troy S.]

Have a client that is asking whether they can declare a match for the 2006 plan year (ending 12/31) by 3/15 (tomorrow), have us post this as an accrual, then actually fund at a later time? Is this possible? If so, what is the latest they can fund the match?

[Jim Chad]

The match is one of the contributions due by the due date of their company tax return, including extensions. If they have filed an extension, or do so by tomorrow, the answer is yes. They have plenty of time to fund it.....Provided they have not already filed their tax return.