Deadline
Hello-
Client (single member LLC that files on Schedule C) is trying to set up a cash balance plan and 401k plan for 2021. The deadline to both setup and contribute to the Cash Balance Plan is September 15th if he files an extension for his individual tax return correct?
Thank you!
Permalink Submitted by Dan Zaehring on Wed, 2022-04-13 22:31
Although neither plan is an IRA– and thus outside the subject of this forum– all qualified employer plans must be fully set up by 12/31 of the year for which contributions are to be made. Assuming they are timely set up, contributions can be made up until the due date of tax return, including extensions.
Permalink Submitted by William Tuttle on Thu, 2022-04-14 17:40
While this forum specializes in IRA account issues. Most posts about employer retirement accounts are fine. Some of the more detailed compliance issues are best addressed by a professional and may not be answered.
A simple question such as setup and contribution deadlines are clearly ok.
Not to mention your reply is outdated and incorrect.
Under the SECURE Act of 2018 and effective 01/01/2020. The deadline to adopt a qualified plan was changed from 12/31 to the employer’s tax filing deadline including extensions.
While the deadline for employer contributions remains the same. A 401k plan must still be adopted by 12/31 in order to make an employee deferral election by 12/31.
Only then can an employee deferral of a self-employed individual be made up to the tax filing deadline including extensions.