For a calendar-year DB plan, if the employer makes the 2024 plan year contribution after 9/15/2025 (the 8½-month funding deadline) but before 10/15/2025 (the extended tax return due date), does it still count as a 2024 plan-year contribution under IRC §404(a)(6)?

My understanding is that it should still be deductible for 2024 and but can't be reported on the 2024 Schedule SB/counted as 2024 funding. Am I interpreting §404(a)(6) correctly?

That is my understanding. Assuming it's below the maximum deductible and the sponsor designates it a 2024 contribution. You would be showing it on the 2024 tax return for deduction and on the 2025 schedule SB for minimum funding. 

I believe it also creates different asset bases for 404/430 when doing your 2025 valuation for min/max calcs.

Isn't the argument for this not being allowed that there's no justification for a contribution that can't be applied for 2024 to then be a 2024 deduction?

1 hour ago, Bri said:

Isn't the argument for this not being allowed that there's no justification for a contribution that can't be applied for 2024 to then be a 2024 deduction?

Is there published IRS guidance that says that? I'm not aware of one but if it exists I'd like to see it.

It can't be applied for minimum funding because it past the deadline, but I see no reason why the tax payer can't apply it on their tax return if it is timely made for tax deduction purposes and designated as such by the Sponsor.

I think it was just a point a CPA or tax attorney had made at a session sometime somewhere, but I also don't recall whether that opinion ended up as any official position.  But it sounded to at least be reasonably constructed.

Took this from an old ACOPA presentation

2011 Greybook Q&A 7
•A company has a calendar taxable year and sponsors a pension plan with a calendar plan year. Which of the following combinations are acceptable for a contribution made during the 2010 §404 contribution grace period (January 1, 2011 to September 15, 2011)?
–a) Deduct in 2010, reflect on 2010 SchedSB?
–b) Deduct in 2010, reflect on 2011 SchedSB?
–c) Deduct in 2011, reflect on 2010 SchedSB?
–d) Deduct in 2011, reflect on 2011 SchedSB?

2011 Greybook Q&A 7 (cont)
•RESPONSE
•a), c), and d) are acceptable. IRC §404(a)(6) deems a contribution made after the last day of a taxable year to be made on the last day of a taxable year if the payment is made on account of such taxable year. A contribution is considered to be on account of the 2011 plan year when reported on the 2011 Schedule SB and thus cannot be deducted on the sponsor’s 2010 tax return

Commentary

We respectfully disagree that (b) is not acceptable
•IRC 404(a)(6) and 76-28 do notrequire contribution to be on account of preceding planyear
•They require it to be on account of preceding taxyear
•As detailed above, there is plenty of authority (e.g. RR 77-82) providing that they can be different
–e.g. as in (c) where on 2010 SB but 2011 tax return
•If a contribution is within deductible limit for preceding year, and is made by due date of preceding year tax return, it should be deductible in preceding year irrespective of treatment for funding purposes

For the record, the Gray Book is owned by The Enrolled Actuaries Meeting (and the Conference of Consulting Actuaries).  The part above following the word "Commentary" is from the ACOPA and is NOT part of the Gray Book.

Also, as I read the original question posted above, the premise of Q&A 2011-7 does not relate, so the Q&A may not be relevant to this discussion.

Slightly related.

Plan sponsor requested the transmission of their contribution on the funding deadline of 9/15.

Trust reporting recorded it on 9/16.

I'm thinking we can still treat it as having been deposited timely, ie by 9/15?

19 minutes ago, TPApril said:

Slightly related.

Plan sponsor requested the transmission of their contribution on the funding deadline of 9/15.

Trust reporting recorded it on 9/16.

I'm thinking we can still treat it as having been deposited timely, ie by 9/15?

I believe that falls under the timely mailing is timely filed rule unless there an exception to that for minimum funding. But save the evidence that it was timely transmitted in the event of IRS audit.

§ 7502 - Timely mailing treated as timely filing and paying