Elective Deferrals For the Self-Employed

[mming]

Is there any way for a self-employed individual to make deferrals currently to an existing plan for 2007 since it's only now that their 2007 profit is being determined? I would guess not, but I seem to recall hearing that "accrued compensation paid" up to 2 1/2 months after the close of a year can be used for certain things and wasn't sure if this situation could be construed as such. Is is too late to make '07 deferrals?

[Bird]

Well, I don't think the concept of a bonus 2 1/2 months after the end of the plan year is relevant to a self-employed person. But, from a tax standpoint, it is possible to complete the deposit of 2007 deferrals now, if they were properly elected before the end of 2007. The DOL would care about the timeliness of the deposits if it were an ERISA plan.

[John Feldt ERPA CPC QPA]

Bird is correct - did they make a written election to defer by December 31 (such as 10% of my net income, or the lesser of my net income or $15,500)?

If no deferral election was made, then I agree that it is too late to do so now for 2007.