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    3 Replies Latest reply on Oct 22, 2017 6:48 PM by moderator_lisa

    Constructive receipt and retirement contributions

    cgr Newbie

      I am a sole proprietor and my question relates to my i401k contributions.  Specifically, my question has to do with i401k salary deferrals and cash basis accounting "constructive receipt".  I have a custom plan document that allows for Roth and after-tax contributions as well.  It seems to me that the doctrine of constructive receipt makes it impossible to perform a salary deferral, i.e. of compensation "not yet received".  As a sole proprietor, I have constructive receipt the instant the check arrives.   The IRS is pretty clear in this wording in both cases.   How am I supposed to make my contributions?   I ask for clarification help because this will affect how and when I make my plan contributions.  Thanks!!