Stash026 Posted March 25, 2019 Posted March 25, 2019 I know the rules for the deductibility of employer contributions, but a client wants the regulations to show to one of the contributing employers. I can't seem to put my fingers on any IRS regulations regarding the timing, so does anyone have it handy? Thanks in advance!
ErnieG Posted March 26, 2019 Posted March 26, 2019 I.R.C. § 404(a)(6)Time When Contributions Deemed Made — For purposes of paragraphs (1), (2), and (3), a taxpayer shall be deemed to have made a payment on the last day of the preceding taxable year if the payment is on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof).
Patricia Neal Jensen Posted March 26, 2019 Posted March 26, 2019 ErnieG gives the best Code cite. The confusing thing in this discussion is that a failure to meet the "deadline" does not mean a penalty, etc. It just throws the deduction into the year in which the contribution is actually made. If your client is "maxing out," they could run into trouble by creating a situation in which two contributions occur in the same tax reporting year. Talk to the CPA for the entity. Patricia Neal Jensen, JD Vice President and Nonprofit Practice Leader |Future Plan, an Ascensus Company 21031 Ventura Blvd., 12th Floor Woodland Hills, CA 91364 E patricia.jensen@futureplan.com P 949-325-6727
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