Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 77-82

1977-1 C.B. 121

Section 404
Section 412

IRS Headnote

Contributions; minimum funding; credit for contribution for prior tax year. Contributions made by a calendar year employer within the time provided by section 404(a)(6) of the Code after the end of 1975 to a qualified calendar year plan, in existence on January 1, 1974, and deducted by the employer for the 1975 tax year may be considered contributions for purposes of satisfying the minimum funding standards under section 412(b)(3)(A) for the 1976 plan year.

Full Text

Rev. Rul. 77-82

Advice has been requested as to whether an employer who is a calendar year taxpayer may contribute, to a calendar year plan in existence on January 1, 1974, an amount that will, pursuant to section 404(a)(6) of the Internal Revenue Code of 1954, be considered deductible for the employer's 1975 taxable year and that will be considered a contribution under section 412(b)(3)(A) for the 1976 plan year.

Section 404(a)(6) of the Code provides that contributions made subsequent to the last day of an employer's taxable year on account of such taxable year may, for purposes of paragraphs 1, 2, and 3 of section 404(a), be deemed to have been made on the last day of such taxable year if such contribution is made before the time for filing the return (including extensions) for such taxable year.

Section 412(b)(3)(A) of the Code states that the funding standard account shall be credited with "the amount considered contributed by the employer to or under the plan for the plan year." For plans in existence on January 1, 1974, section 412 generally applies only to plan years beginning after December 31, 1975.

Section 412(c)(10) of the Code provides that for purposes of section 412, contributions made 21/2 months after the last day of a plan year shall be deemed to have been made on the last day of such plan year. Section 412(c)(10) also provides that the 21/2 month period may, under regulations, be extended an additional six months.

Section 11.412(c)-12(b)(2) of the Temporary Income Tax Regulations states that the rules relating to the time a contribution to a plan is deemed made for purposes of the minimum funding standard under section 412 of the Code are independent from the rules relating to the time a contribution to a plan is deemed made for purposes of claiming a deduction under section 404(a)(6) of the Code.

Thus, it is possible for the same contribution both to be deductible under section 404 of the Code for the 1975 employer's taxable year and also to be credited for minimum funding purposes under section 412 for the 1976 plan year, if such contribution is made in the 1976 plan year but within the time prescribed by section 404(a)(6) of the Code for the 1975 taxable year.