deadline for making employee contriubtion

[thepensionmaven]

I know a sole proprietor and/or partner has until the due date of their tax return to make the contribution, including deferrals.

I do not believe this applies to a shareholder of an S Corp, maintaining a SHNE 401K with common law employees.

I believe the employee contribution would have had to have been made by 12/31 and the employer contribution would have to be made 9/15 on extension.

[Bill Presson]

Deferrals withheld from w-2 wages are subject to the 7 day safe harbor deposit rules and the ultimate "as soon as administratively feasible, etc" rules.

So a payroll on 12/31 should be deposited within 7 business days to be confident of timeliness.

 

[Bird]

An S-corp shareholder would have to have the deferrals withheld from his wages by 12/31.  If that wasn't done, then there are no options for even talking about deferrals.  If it was done but not deposited, then the deferral contributions are fine as far as deductions but now they are (very) late deposits.

[thepensionmaven]

I thought so, thanks for the confirmation.