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February 23, 2009

Fiscal year

Your Guide

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Definition

Twelve month period other than the calendar year, on which the employer operates it’s retirement plan.

Instead of using the calendar year, an employer may elect to use any other consecutive twelve month period as the limitation year.

This includes a fiscal year with an annual period varying from 52 to 53 Weeks. The fiscal year must satisfy certain requirements, such as the following:

The employer’s books and records must be regularly computed on the basis of an annual period which varies from 52 to 53 weeks and ends always on the same day of the week and ends always

(A) on whatever date such same day of the week last occurs in a calendar month, or

(B) on whatever date such same day of the week falls which is nearest to the last day of a calendar month,

Referring Cite

IIRC § 441(f), Treas. Reg. §1.415-2

Additional Helpful Information

 For a plan that operates on fiscal year, the deadline for making employer contributions to the plan is the due date for filing the employer’s taxable year ,including extensions

 SIMPLEs cannot be maintained on a fiscal year- they must be maintained on a calendar year.

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Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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