Contribution made after tax deadline

[Jakyasar]

Hi

Believe it or not, first time for this in recent memory.

Sole prop filed their return 2024 on 4/15/2025 with no extension.

Despite all warnings, made the pension contribution in May 2025 but took the deduction for 2024.

Net c was 350k and the DB contribution was 100k and taken as a deduction on 2024 return.

What can/should be done for 2024, if anything?

[Bri]

I suppose you have update his net wages for the AAC to not include the deduction - does that flow through to the MRC?

[Jakyasar]

MRC is satisfied which is close to the contribution amount. Increase in the schedule c due to inability to deduct will not affect MRC as it is a CB plan.

No other solutions???

[Bri]

I'm the type that would say, despite the CPA deducting it, this is the real pay that's supposed to be used for 2024, and then you'll end up with a similar issue when you calculate the plan-pay for 2025 as you'd have to deduct both.

If those "what they really should have been" numbers don't give you adverse plan issues (underfunding, running out of deduction room for 2025, revised 415 limits affecting the formula, etc.) then stick with your own calculations? 

Clearly under audit the IRS would make you re-calculate it to remove the deduction, anyway. 

[Jakyasar]

100% in agreement, thankfully a CB plan so funding is not affected.

I was just looking for another solution that I may have missed/not aware of.

Thank you for your comments.

[Calavera]

I would also suggest recommending in writing to refile 2024 taxes, since that contribution was not deductible in 2024, just to have it on record, so you wouldn't be blamed later.

 

[Jakyasar]

already done but you think they will not blame you anyway???