415 Testing Question

[MBCarey]

A plan makes its 2009 Profit Sharing contribution in August 0f 2010. For purposes of the 415 test, is the 2009 Contribution counted in the 2010 testing? If so, then the 2010 contribution which will be made in 2011 would it be counted in 2011 415 Testing. The contribution is based on current year compensation, just not paid until the following year.

I'm sure I should know this, but I don't and I am also not sure how to set it up in Relius to test unless I just don't post the contribution Until the year it is actually being made.

[Guest Sieve]

Assuming the employe'sr PS contribution for 2009 was made no later than 30 days after the end of the deduction period (due date, as extended, for the tax return for the taxable year in which the plan year ends) and was intended to be a 2009 contribution , then it counts as a 2009 contribution for Section 415 purposes (assuming its not a tax-exempt entity). (Treas. Reg. Section 1.415©-1(b)(6)(i)(B).)