Amending MPP for increased contribution after close of PY

[Guest Rocky]

Sponsor of Money Purchase Pension Plan wants to increase the contribution for the 2007 Plan year (a calendar year). Is there any issue with amending the Plan after the close of the Plan Year to provide for a greater contribution (assuming the contribution is timely made for deduction and funding purposes)?

[QDROphile]

Other than you can't do it? No.

[Bird]

I don't believe there's a problem at all. It's a pension plan and may be amended to increase contributions after the end of the year. I don't recall if it's 2 1/2 months or tied to the business tax return...I think it's 2 1/2 months.

[Guest Rocky]

Other than you can't do it? No.

QDROphile,

Thanks for your response.

Why can't it be done? Code section 412(d)(2) (formerly 412©(8)) allows for a retroactive plan amendment if adopted no later than 2-1/2 months after the close of the plan year provided it does not reduce a participant's accrued benefit.

I thought there might be an issue as to which year the deduction would apply.

[QDROphile]

My bad. I had another recent situation in mind and did not give the question adequate separate thought.