Bill Reskin Posted October 8, 2020 Posted October 8, 2020 We initiated a large profit sharing deposit into the 401k accounts via our bank like we have in the past. It was in limbo for a couple of days then rejected missing deadline for September 15 - corporate filing deadline. I have looked to see if the IRS allows for such errors but have not found any to put the money into the account after the 9/15 failed attempt. Anyone know of a rule or process or ... anything that might allow a deposit after the 9/15 date?
Luke Bailey Posted October 10, 2020 Posted October 10, 2020 Bill, I take it that the bank that extends the line is not the same bank as the plan trustee? When was the contribution eventually made? You can still deposit it "for" 2019, but may need to take the deduction in 2020. However, the particular facts and circumstances, and how your return prepare sees them, will govern. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
Mike Preston Posted October 10, 2020 Posted October 10, 2020 Client, payroll firm, accountant, TPA or advisor located in a disaster area? You might have until 12/15 if so. Lots of facts unknown here but in general if the funds were legitimately removed from the plan sponsor's control the funds become plan assets at that time. Luke Bailey 1
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