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Timing of Profit Sharing


Guest Juice

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Guest Juice
Posted

I have a company that has filed their taxes for 1998, but now wants to make a Profit Sharing Contribution to their 401(k) plan. May they still make this contribution, and if so, can they ammend their tax return to reflect the contribution?

Posted

Did the plan sponsor obtain an extension of the deadline for filing a corporate tax return? If so (since you didn't tell us the corporation's tax year), when is the deadline, including any extensions, for filing of the corporate tax return?

Guest Juice
Posted

Tax filing deadline is March 15 w/o extension.

Posted

I assume the answer to MWeddell's question is no, they did not file for an extension of time to file their corporate return. They may not make a contribution for 1998 and amend their 1998 tax return to reflect this contribution.

If they had filed for an extension of time to file their corporate tax return, then their funding deadline would have been extended as well. Otherwise, it is too late for a corporation to fund a contribution for it's 1998 tax year.

They may make a contribution, but it would be treated a 1999 contribution if it were made today, given the scenario above.

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