Contribution in year of plan termination

A client's Profit sharing plan was terminated as of May 31, 2020.  All employees other than the owner were terminated as of 12/31/2019.  He wants to know if he can contribute a final profit sharing contribution for 2020.  If so, do we just need his compensation through 5/31, and can he wait until due date of his return to fund? He has already rolled over his balance that was in the plan to another qualified plan of his new employer - started there in July 2020.  Need thoughts and advice.  Thanks!

Pammie57, I'll be interested to see the thoughts of others on this, but I think to some extent it might depend on the paperwork. I assume that the contribution is discretionary and that the owner actually earned compensation for the period through May 31, 2020. If that is the case, then if the resolution terminating the plan had said that a final contribution would be made based on compensation through May 31, 2020, to be determined later, I would think that would be possible and you could do it. If there is nothing like that in the paperwork, and especially if on the contrary you have paperwork that says the equivalent of the plan is terminated as of 5/31 and is there after null and void, etc., you probably can still do it, but I suppose someone might argue that the employer cannot now exercise discretion to make a contribution to a plan when that plan no longer exists, especially if the trust has now disappeared because no more assets.

I agree with Luke. Unless the resolutions are explicit on this point, I think the better argument is that the termination means termination. You cannot make a contribution under an instrument that does not validly exist. 

He might get to the same place by starting a SEP.