Max Deductible Question

[austin3515]

Here's a doozy for you...

Calendar year plan. Fiscal year of employer ends 9/30/2015. 12/31/14 contributions are deducted on the 9/30/15 return. They are amending the fiscal year to 12/31 and there will be a short fiscal year from 10/1/2015 to 12/31/2015.

How do I determine the max deductibe for that short fiscal year?

The owners will have more than 66,250 of comp in Q4 ($265,000 x 3/12). But I have 12 months of allocations to allocate out. Do they just get hosed on the 2015 plan year? Or is there a way to use the calendar year for the max deductible, especially since otherwise the comp for those 9 months will never get to be used?

[PensionPro]

This is more of an accounting than a pension question. I believe you can deduct contributions for 12/31/14 and contributions that are based on compensation for Q1-3 of 2015 on the 9/30/15 return. If that amount exceeds 25% of eligible compensation for the period 10/1/14 to 9/30/15, the employer will need to shift some of the contribution to the next taxable year's deduction limit calculation.