Question about SEP-IRA contribution

[QuestionGuy101]

What is the name of your state (only U.S. law)? CA

A C-corp ran on a fiscal year between July 1st to June 30th.

Their 2007 tax return (fiscal year 7/1/2007 to 6/30/2008) was due on 9/15/2008. With the extension, the due date became 3/15/2009.

(1) The C-corp could still make 2007 SEP-IRA contribution for it's employees before 3/15/2009 (the deadline of their tax return with extension). Is it correct?

(2) If the C-corp has been converted to an S-corp before 3/15/2009, can the S-corp make the year 2007 contribution for the employees?

Thank you.

[LdiJ]

Originally Posted by QuestionGuy101

What is the name of your state (only U.S. law)? CA

A C-corp ran on a fiscal year between July 1st to June 30th.

Their 2007 tax return (fiscal year 7/1/2007 to 6/30/2008) was due on 9/15/2008. With the extension, the due date became 3/15/2009.

(1) The C-corp could still make 2007 SEP-IRA contribution for it's employees before 3/15/2009 (the deadline of their tax return with extension). Is it correct?

(2) If the C-corp has been converted to an S-corp before 3/15/2009, can the S-corp make the year 2007 contribution for the employees?

Thank you.

I think that the answer to both of those questions is no, but I am not 100% certain. See a local tax professional who can research the matter to get you a truly accurate answer.

[davew128]

I don't see why it couldn't. The S election doesn't really have any effect on the C corp year contribution, and the deduction belongs to the C corp year no matter what as long as its paid by the extended due date. I've never heard of anything that would change that.