September is the end of the third quarter for employers whose fiscal year is the calendar year. We receive requests for new plans throughout the year, but it always spikes in the fourth quarter. Employers usually have a good idea by now about how well they will do this year, and the fourth quarter is the final opportunity to finalize a design and install the plan by the end of the year.
The reality is that a tax qualified retirement plan document must be executed fully by the end of the employer’s year in order to be eligible for a tax deduction for that year. If you have not yet considered installing a new plan or revising a current plan, we would welcome the chance to discuss it with you. The sooner the better.
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