Deductibility of late contributions

[Dougsbpc]

Suppose you have a safe harbor plan that deposits safe harbor employer contributions more than 2 years after 8 1/2 months after the plan year end.

Along with going through VCP to make up the late contributions, are they able to take a deduction in the year the contributions are deposited?

Thanks

[ETA Consulting LLC]

Suppose you have a safe harbor plan that deposits safe harbor employer contributions more than 2 years after 8 1/2 months after the plan year end.

These contributions aren't subject to the funding rules of Section 412 merely because they are required. Hence, the deadline is really 12 months after the close of the year.

Along with going through VCP to make up the late contributions, are they able to take a deduction in the year the contributions are deposited?

Thanks

Sure, they will be deductible in the year of desposit.

Good Luck!