Deductible Contribution for Terminated PLan

[emmetttrudy]

DB Plan terminated in 2009. They decided to wait for the DL to be issues to process distributions. The DL was received in January 2011. There is approximately $100k of shortfall. Their options, as I understand it, are a) fund the shortfall and pay everyone out, or b) have majority owner(s) forgo benefits. It is a PBGC plan. My question is, if they decide to fund the shortfall, is this contribution deductible in 2011?

[ScottR]

I would deduct the full contribution immediately. You should be able to justify the deduction under Code Section 404(g) and/or 404(o).