401k Plan

[Guest Lindee]

We failed to make the employer contribution of $29k for our 2006 failing top heavy test by the deadline of 12/31/07. What are our options at this point? Any information would be greatly appreciated. Thank you.

[Tom Poje]

correction is part of EPCRS, most recent version is rev proc 2006-27

see appendix A.02 (should be around page 58)

not sure how folks survive without a copy of this. it's good for insomnia as well.

[Guest BobatING]

Just a follow up question.

Is the due date in the case above 12/31/07?

I thought contributions could only be allocated, under the 415 rules, if they were made no later than 30 days after the due date of the filing of the tax return.

Is there a special exception for top heavy?

Thanks,

Bob

[Tom Poje]

I'll be nasty a second time and make you look it up again.

see section 6 .02(4)(b) maybe its around page 24 if it printed like my copy.

note: in regards to all matters involving EPCRS:

e.g determination letter if need, standard practices, etc

[Guest BobatING]

Tom:

Perhaps I did not state my question clearly, because the cites you refer to are part of EPCRS which are referring to the corrective contribution.

What I meant to ask, based on the original post, was when does the error first occur.

The original post states that the 12/31/06 TH contribution was not made by 12/31/07 and thus the problem occurs, which you correctly refer to EPCRS for correction.

My understanding of the 415 regulations is that an allocation may be made for the prior year as long as it is made by no later than 30 days after the due date of the tax return. That would seem like 10/15/07 assumong a corporation on extension.

Is there a special exception for the timing of the deposit of the top heavy contributions that will allow the contribution to be made by 12/31/07 without EPCRS being required.

Feel free to be nasty a third time and tell me to read the TH regs but I do not see the answer in EPCRS.

Bob

[Guest Lindee]

correction is part of EPCRS, most recent version is rev proc 2006-27

see appendix A.02 (should be around page 58)

not sure how folks survive without a copy of this. it's good for insomnia as well.

Tom Poje : Thank you so much.