Since most Profit-Sharing Contributions are not mandatory, you have several options related to the funding of a 2019 Profit-Sharing Contribution that is already calculated and not yet deposited/allocated to participants’ accounts:
1. If you did not yet claim the contribution on your 2019 company tax return, there is no rush to make a decision on whether or not you will make a Profit-Sharing Contribution for 2019.
2. If you already claimed the Profit-Sharing Contribution on your 2019 company tax return and you have not yet filed it, please contact your accountant to discuss the implications of not making a 2019 Profit-Sharing Contribution.
3. There is the possibility that the IRS will provide relief on funding requirements. We’ll keep you apprised of developments.
Important Considerations:
• Contact Your TRA Client Relationship Manager if you ultimately decide that you cannot make a planned 2019 Profit-Sharing Contribution. We will revise your 2019 Annual Administration Report at no charge to remove the Profit-Sharing Contribution allocations.
• Contact your accountant to discuss any changes to 2019 or 2020 Profit-Sharing Contribution amounts you decide on for tax-reporting purposes.