Deduction of Contribution

[Dougsbpc]

Suppose you have a client who wishes to adopt a DB plan in 2009. The client is a corporation with a December year end. Suppose they adopt a plan with a year beginning November 1, 2008 and ending October 31, 2009.

The deductible limit can be determined from the plan year that begins in the taxable year per reg. 1.404(a)-14©. So as of 11/1/2008 the minimum required contribution is $100,000. The corporation files its 2008 tax return by March 15, 2009 with a $0 deduction but makes the $100,000 contribution May 15, 2009. As such, the $100,000 is deductible in 2009. Then, suppose the 11/1/2009 minimum required contribution is $105,000 and is contributed by March 15, 2010. I would think the $205,000 would be deductible on the corporation's 2009 tax return.

Does anyone/everyone disagree with this?