Advance contribution on Schedule SB?

[Pension RC]

I have a client who deposited a 2012 contribution in 2011, Is this allowed? Would it be listed on the 2012 SB with the date in 2011?

Any comments would be appreciated.

Thanks!

[Andy the Actuary]

(1) It certainly can be deducted in 2011 (or 2010 if made before the 2010 FIT return was due); you'd need to check the carryforward rules to determine if deductible in 2012.

(2) It would be reported on 2011 SB. It could be added to the 2012 PFB and used to offset the 2012 MRC provided the 2011 (FTAP-PFB)/FT >= 80%. If less than 80%, client would have to make a contribution in 2012.

(3) For FASB purposes, it would be a 2011 contribution

(4) It would have been in the assets 2012 BoY to determine the AFTAP if the Plan requires an AFTAP certification

[david rigby]

No. Contributions on the SB must be for the plan year. You might consider whether the 2011 SB should be amended.

Gray Book Q&A 2003-4 has a similar discussion, and part of the answer is:

"No. A contribution made in 2002 to a calendar year plan cannot be included on the 2003 Schedule B."