Deductible Contribution to DB plan after year of plan termination

[YankeeFan]

A sole proprietor maintains a one participant defined benefit plan with a plan year ending December 31st. The plan was terminated effective December 31, 2009. The owner-employee is entitled to a single lump sum of $1,050,000 and intends to cash out the plan before December 31, 2010. The plan's market value of assets is currently $1,000,000. The sole proprietor would like to make a $50,000 contribution to the plan prior to the distribution of assets in order to fully fund the plan.

Can the employer (sole proprietor) contribute $50,000 to the plan and take a 2010 deduction against his 2010 net schedule c income although the plan terminated in 2009? Thanks in advance.

[SoCalActuary]

For accrual purposes this plan was "terminated" in 2009.

But the corpus of the trust remains in place in 2010, so the trust has not terminated.

The IRS needs to address this issue.