If you are a business owner/employer with a calendar fiscal year, you still have time to adopt a qualified retirement plan for 2006. Here’s what you have to do:
Before December 31, 2006, you need to:
- Sign adopting resolutions and a plan document, and
- Deposit a de minimis amount, e.g., $100 in a trust account to establish corpus.
After December 31, 2006, you need to:
- Fund the balance of the deductible contribution no later than the time your tax return is filed including extensions, and
- File Form 5500, if applicable
And if this is your first retirement plan, check with your accountant to see if you are eligible for the tax credit for pension plan start up costs.