401Kerfuffle Posted April 25, 2019 Posted April 25, 2019 Can a plan make a profit sharing allocation, for 2018, after they've filed their taxes for 2018? The calendar year plan has no intention of amending their 2018 return, so we'd be looking at deducting the 2018 allocation for the 2019 tax year. I know they'd be subject to the 25% deductibility for 2019 (considering all employer contributions for 2019 plus the 2018 profit sharing allocation). Is it possible to allocated the PS for 2018 but deduct and report it in 2019? If so, what other compliance tests would the profit sharing need to be included in?
C. B. Zeller Posted April 25, 2019 Posted April 25, 2019 They can count it as an annual addition for 2018 as long as it is made within 30 days of the deadline for making a deductible contribution for 2018 (e.g. their tax deadline for 2018). See 1.415(c)-1(b)(6)(i)(B). Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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