BenefitsLink Message Boards > When do S corp distributions need to be paid to the plan to be included in plan year allocations?

Full Version: When do S corp distributions need to be paid to the plan to be included in plan year allocations?

BenefitsLink Message Boards > Retirement Plans > Employee Stock Ownership Plans (ESOPs)

ladycpa

Mar 11 2005, 02:35 PM

I have a client who will be paying S corp earnings distributions and the ESOP will receive it's pro rata share of these. The client's tax year and plan year are both calendar year end. They want to know if they have to deposit by the 3/15 tax deadline in order for us to include these in the 12/31/04 plan year end allocations. I don't think so because they are not deductible to the S Corp like a contribution would be so I'm sure that they need to be there by that deadline. Any feedback would be appreciated!
Thanks

stephen

Mar 17 2005, 11:32 AM

There is not a requirement to deposit by 3/15.

vebaguru

Mar 21 2005, 11:37 AM

If the plan is on an accrual basis, it should include all receivables as of 12-31. Otherwise, the distributions would not be counted until received.

This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.