Hurricane IRMA - 404 DC contributions

[Scuba 401]

relief not specifically mentioned but the IRS relief for Irma seems to reference all of the relief listed in Rev. Proc. 2007-56.  can anyone confirm i am reading this correctly and that specifically the september 15 deadline to fund DC contributions would be extended to January 31, 2018?

[Lois Baker]

How about #24 under "Employee Benefit Issues" in Rev. Proc. 2007-56:

A contribution to a qualified retirement plan (other than an individual retirement account) shall be deemed to have been made by the taxpayer on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed for filing the return for such taxable year.

[dan.jock]

There are currently 2 relief measures out right now.  One says that they are going to relax documentation standards for folks to receive a hardship withdrawal.  The other says that “various business tax deadlines” are extended to 1/31/2018.  We are most interested in the latter.  The text around it speaks to the filing and payment of estimated tax, company tax returns, and remitting of periodic payroll taxes.  It does not specifically speak to retirement plan contributions or filings.  However, the measure does not at all present the list of covered filings and payments to be comprehensive or exhaustive.  So I would say that if a sponsor needs the relief while he picks up the pieces of his broken business, that he/she take it.  We should not use this as a gimmick to kick the can down the road. 

 

The IRS further said that no one should call and ask for permission not to file.  There is a list of counties in Florida that are listed as affected areas.  If the address on the return or filing is within that geography, the IRS simply won’t send a late filing notice.  If the sponsor does get a notice and they think they qualify for relief, they are then instructed to call and the IRS will abate any penalties. 

 

 

Hope this helps.

 

[RatherBeGolfing]

4 hours ago, Scuba 401 said:

relief not specifically mentioned but the IRS relief for Irma seems to reference all of the relief listed in Rev. Proc. 2007-56.  can anyone confirm i am reading this correctly and that specifically the september 15 deadline to fund DC contributions would be extended to January 31, 2018?

§7508A relief has been granted for those affected by Irma.  The relief declaration reads in part

Quote

The IRS also gives affected taxpayers until Jan. 31, 2018 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 

Treas. Reg. § 301.7508A-1(c)(1)(iii)

(iii) Making contributions to a qualified retirement plan (within the meaning of section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2); making distributions under section 408(d)(4); recharacterizing contributions under section 408A(d)(6); or making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3);

[Lois Baker]

Deadline for safe harbor contributions apparently is not included, though; see: 

http://www.relius.net/News/TechnicalUpdateDetails.aspx?T=P&1=1&ID=1111