S corp can make deferrals through April 15th?

[Jim Chad]

One of our tax clients has a 401(k) with Principal. This client told the CPA that he amended his plan to allow them to make deferrals through April 15th. Furthermore, on April 2, 2012 he wrote a personal check for about $10,000 and asked the CPA to amend his w-2 to count this as a deferral When I said this wasn't right he checked with "Principal" and they said everything is fine.

Does anyone have nay idea what could be going on here?

[QDROphile]

Miscommunication of various sorts.

[Archimage]

Shenanigans.

[K2retire]

Inadequately trained call center employees saying what they think the rules should be?

[Draper55]

depends on what the definition of fine is.

[GBurns]

Personally, I would question what the client is saying.

This client claims that "he amended his plan". How ? I cannot recall seeing clients amending plans themselves, usually it involves the plan provider, which in this case it seems not.

This client instructs the CPA to amend the records and create a deferral. What did the CPA do and tell him?

This client "checked" with Principal, but Do you know the exact nature of the conversation and with whom it took place?

Too often I used to see people who claimed to have been told things then it turns out that it really wasn't so at all.

I see too many questionable things to feel comfortable believing this client.

[austin3515]

I know what happened. The PRincipal person call center employee said "are you paid via a K-1? Yes? OK, then you have until April 15th."

A tale as old as time... OR at least since they introduced s-corps...