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When is it too late to setup a DB plan?


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Does this hold true for DB plans... all plans?

Tax Status

Adoption Deadline

Extended Deadline

S-Corporation (or LLC taxed as S-Corp)

March 15

September 15

Partnership (or LLC taxed as a partnership)

March 15

September 15

C-Corporation (or LLC taxed as C-Corp)

April 15

October 15

Sole Proprietorship (or LLC taxed as sole prop)

April 15

October 15

 

 

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Absolutely. Given the 9/15 drop dead date, we work backwards from there given the situation (solo plan, few employees, larger plan) for the time needed to complete the valuation, establish the trust/custodial account, execute plan documents, draft and review plan documents and come up with our approximate due date for the client to engage us for a prior year effective date. Don't want a sales rep selling a 2023 plan on 9/13/2024!

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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19 minutes ago, CuseFan said:

Absolutely. Given the 9/15 drop dead date, we work backwards from there given the situation (solo plan, few employees, larger plan) for the time needed to complete the valuation, establish the trust/custodial account, execute plan documents, draft and review plan documents and come up with our approximate due date for the client to engage us for a prior year effective date. Don't want a sales rep selling a 2023 plan on 9/13/2024!

don't you dare to deprive the sales rep of his commissions!  Their job is to sell, and the implementation is your problem to figure out :)

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Funny. I'll worry about that when the sales people start designing and modeling plans!

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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