Guest malcpa Posted February 28, 2014 Posted February 28, 2014 We have a client (s-corp) who contributed and deducted on their tax return approximately $6,000 more than the 404 limit allows them to do on their 401k ? In addition to filing form 5330 and paying the excise tax, do we have to amend their tax returns?
ETA Consulting LLC Posted March 1, 2014 Posted March 1, 2014 First, I agree 100% with Lou S. I would say, however, when identifying a problem, you may want to look at ways to make it 'not a problem'. Deductibility of contributions are based largely on the timing of the deposits to the trust. So, if you made $6000 in contributions in 2014 for the 2013 plan year, then you could look to have that $6000 deposit considered a 2014 contribution since it was 'actually deposited' in 2014. Just a thought to apply when ascertaining whether or not a problem really exists. Good Luck! Bill Presson 1 CPC, QPA, QKA, TGPC, ERPA
Bill Presson Posted March 3, 2014 Posted March 3, 2014 Also, make sure they aren't including the deferrals in the deduction calculation. I still see this occasionally. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
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