Frozen MPP

[Guest maxtax]

Regarding a Keogh Money Purchase Plan: If MPP is frozen in Jan 2008 can the contribution for 2007 tax year be made after it is frozen (Feb or March 2008)? If the contribution for 2007 must be made before it is frozen (ie contribution made in Jan and plan frozen on March 1) will a contribution need to be made for the first two months of the 2008 tax year? Thank you!!!

[WDIK]

It is my understanding that the contribution for the 2007 plan year can be made any time after the "freeze date" up to the general funding deadlines.

[Bird]

I agree with WDIK. Freezing the plan as of some date in 2008 does nothing to affect the timing of the deposit of the 2007 contribution. And completing the 2007 deposit after the freeze date does nothing to affect the 2008 contribution, which is presumably $0.

[Guest maxtax]

I agree with WDIK. Freezing the plan as of some date in 2008 does nothing to affect the timing of the deposit of the 2007 contribution. And completing the 2007 deposit after the freeze date does nothing to affect the 2008 contribution, which is presumably $0.

Thank you WDIK and Bird!