LATE PROFIT SHARING CONTRIBUTION

[Guest CPAPAT]

Employer (Schedule C) made timely PS contributions by 4/15/14 for

3 active employees. Employer did not make PS contribution for

employee that separated from employment in December 2013.

Upon further review, Employer determined a contribution should have

been made for separated employee and made 2013 contribution in

July 2014. Employer filed 2013 1040 by April 15, 2014 without

extension being filed.

What are the ramifications regarding the deductibility of late contribution?

[K2retire]

Most likely it will be deductible in 2014. The possible exception is if the 2013 remainder plus the 2014 contribution exceeds 25% of the 2014 eligible payroll.

[QDROphile]

Evaluation for operational failure and possible remedial action would be appropriate.