Contribution year

Generally, the contribution year is the period that:

• begins on the 61st day of a year, the last 10 months (March to December) of the tax year (ordinarily March 2nd to December 31st of the tax year); and
• ends on the 60th day of the following year (ordinarily January 1st to March 1st of the following year).

Example 1
For the 2011 contribution year which begins on the 61st day of 2011 (March 2nd) and ends on the 60th day of 2012 (February 29th, leap year), each record for a particular contributor to a particular plan would provide a breakdown of the total contributions made during the following periods: March 2, 2011 to December 31, 2011; and January 1, 2012 to February 29, 2012. 

However, the start of a "contribution year" depends on whether the end of the previous contribution year falls on Saturday or Sunday. In such cases, the preceding contribution year ends on the first business day that follows that Saturday or Sunday, and the start of the current contribution year begins on the day after that first business day.

Example 2
The 2008 contribution year began March 1, 2008, (the 61st day of 2008, leap year) and ended March 2, 2009, (the 61st day of 2009). This was because March 1st, 2009 (the 60th day) fell on Sunday. As such, the end of the 2008 contribution year was extended to March 2 (the next business day), which was the 61st day.