Employer Contribution to 401(k)

[JCH]

I have a cash basis one owner S-corp. She maxed out her contribution to her 401(k) in 2006. Her financial planner is urging her to make additional tax deferred contributions to a retirement plan for 2006. Any ideas? Books are closed on the S-corp for 2006 -- can she do a SEP and still contribute for 2006 by 4/17/2007? Net income from the S-corp is around $160,000. Thanks.

[JCH]

I think I found the answer. The S-corp can make a contribution to the solo 401(k) by the due date of the 1120S return, including extensions (See IRC Sec. 404(a)(6). This applies to both cash and accrual taxpayers, which surprised me.