Taking two tax deductions in one plan year.

[Guest TracyAndrews]

We have a client with a plan that currently runs on a calendar year. The accountant is asking us if he can change his client's defined benefit plan year to 1/1/2000 to 11/30/2000 and pro-rate the deduction to 11/12ths. Then the next plan year would be from 12/1/2000 to 11/30/2001. He would also like to take this deduction in 2000. We realize this would kill any 2001 deduction. Is this possible??? And if so, where can we find it in writing?

[LIBOR]

Not exactly ! See Rev.Proc. 87-27 Section 5 Example 2 !! Good Luck !!!