PS after Tax Return Filed but before Due Date

[cheersmate]

FACTS:

- The Plan is a 401kPSP with 3% Safe Harbor NEC

- It's the 2015 Plan Year

- Employer business and 5500 returns were on extension to 9/15/2016 and 10/15/2016 respectively

- Business returns were filed in June, deducting the Employer SH contribution

In August, the Employer decided to contribute PS for the 2015 plan year

QUESTIONS:

1. Is there any reason the PS can not count as a 2015 Annual Addition? It was deposited timely (before due date of tax return) for 415 and therefore seems it should count as a 2015 Annual Addition even though the employer failed to take the deduction for it on the 2015 employer return

2. Since the 2015 Business Returns were actually filed PRIOR to (the deadline to file and) the employer's decision to make this 2015 PS contribution, no deduction was taken on the 2015 returns -- Other than the 25% deduction limitation for 2016, is there any reason the employer can not deduct the 2015 PS on his 2016 business return (along with any other 2016 employer contributions)? The employer does not want to amend its 2015 tax return if it can be avoided.

3. If for some reason the deduction of the 2105 PS can not be taken on the 2016 return, can the 2015 PS be recharacterized as 2016 PS?

Thank you

[Lou S.]

1 - I agree. Not a problem for 2015 annual addition.

2 - Agree subject to 25% deduction limit I see no reason why it can't be deducted for 2016.

3. - N/A because of 1 & 2.

[cheersmate]

Thank you, Lou S.

Happy Holidays!!!