Plan Year Different from Corporate Year

[DP]

I have a new Profit Sharing 401k Plan with a 3% Non-elective SH contribution that is running on a calendar year. The employer's corporate year ends on June 30.

For the 2008 plan year, what is the due date of the 3% SH contribution so it can be counted as a taxable deduction for the corporation? Would it need to be paid by 9/15/09 - the date the corporation's 2008 tax return is due?

Thanks.

[J Simmons]

Yes.

[Guest Sieve]

. . . or it could be paid as late as 3/15/10 in the event that the due date for filing the corporate tax return is extended and some of the extension is used. Be careful, though. In order to be considered a safe harbor contribution, the 3% nonelective must be contributed within 12 months after the end of the 12/31/08 plan year--i.e., by 12/31/09 at the latest. (Treas. Reg. Section 1.401(k)-3(h)(1).) So, a contribution might, depending on the circumstances, be deductible if made by 3/15/10, but in that case the plan no longer would be a safe harbor plan because the safe harbor contribution was made too late.