Safe Harbor NonElective contribution Employer Funding Deadline ?

[Francis]

We have a Safe Harbor 401k plan with a 3% NonElective employer contribution. This is for a non-profit and we file a 990. If the 990 for 2009 is due October 15, 2010, is the employer's 3% 401k contribution for the 2009 plan year also due October 15, 2010? In other words, is the due date the tax filing deadline plus extensions, if any? Thank you.

[John Feldt ERPA CPC QPA]

Not really.

In your example, Safe Harbor contributions for 2009 must be made by December 31, 2010 - that's required by the safe harbor regulations.

However, if you expect to approach the 415 limits (or get within 3% of pay of that limit) for any participant for 2010, then you should make the 2009 contribution by October 15, 2010 (I think).

[Tom Poje]

I'm not sure either. A safe harbor is a form of QNEC or QMAC, and the regs clearly indicate you have up until 12 months to deposit them. Under EPCRS to correct a failed test you can make a QNEC and that counts against the 415 limit for the plan year it was needed and not the year it was deposited (otherwise it would be impossible to give someone who might have quit a QNEC)

so I don't think (and I could easily be wrong) that 415 is a problem.

as for deductibility, that might be a different issue.

[K2retire]

as for deductibility, that might be a different issue.

Non profits don't pay income tax so there's no deduction anyway.

[Scuba 401]

so the deadline for the contribution is 12 months from the last day of the plan year. what happens if the plan terminates in the middle of the year. would the deadline be 12 months from the termination date?