stephen

The $25,000 in the first example represents the principal and interest.

I am not sure what you have to do in Relius to get the testing to work correctly but it seems that you do need to include the interest. I have included an example of how using the current fair market value approrach can help you pass 415. If the plan document allows you may be able to use the current fair market value approach for 415. Example: Corporation with 401(k) plan providing match equal to 100% up to 6% of the deferral and ESOP contribution of 25% of eligible compensation. Participant age 45 earning $100,000 in 2005 Deferral $14,000 Match $6,000 ESOP Lev Stock Forfeiture $1,000 ESOP Contribution $25,000 release 200 shares at $100.00/sh. Total Annual Addition $46,000 This fails 415. If the plan document allows you may use the fair market value approach. Deferral $14,000 Match $6,000 ESOP Lev Stock Forfeiture $1,000 ESOP Contribution $20,000 ( = 200 x $100) Total Annual Addition $41,000 This allows the participant to pass 415. You may want to Double check your plan document to see if returning deferrals is an option- As it is permissible to reduce any excess annual additions, by allowing deferrals to be returned to the participants. Other options: reduce the participant’s share of the ESOP contribution and reallocate to other participants, or allocate the excess amount to a suspense account to be allocated in the next plan year.

1. For an s-corp ESOP either count the full $300,000 as an annual addtion (as 415©(6) exception to exclude interest does not apply to S-corp.) or if the plan allows you can use the current fair market vale. 2. Otherwise the interest piece of the allocation does not affect the participant allocation other than in the share release.

I am almost certain they are a BenefitsLink advertiser.

I am a former High School and Elementary School math teacher. I have worked in the employee benefits field for over 10 years. My career has been with TPA's (NC, VA and now IN). Teams I root for: NFL: Vikings; MLB: Braves (since the Dale Murphy and Bob Horner days), NCAA: NC State (Alumnus); NBA and NHL: they don't much matter until their respective playoffs (which last too long- I will never understand why a 7 game series can last for two weeks but that is another story for another day) OK Lori- you started this thread and have yet to give your background.

Not necessarily. The plan document could be written so that the loans are an investment of the trust. In this scenario the interest is actually spread out amongst the participants. Note, these are pooled accounts which are not very common nowadays.

I am not certain of the mechanics but I expect it would work if the company or the ESOP was listed as the beneficary.

Yes, I have heard of this being done for key employees with large balances.

The particular case was a small engineering firm were the owner and #2 employee earned roughly 60% of the compensation for the firm. Thus their ESOP allocations each year were worth more over time than the 1042 benefit would have been. To elect 1042 the owner need only sell at least 30% of the company to the ESOP thus he could still own 70% of the company and have the 30% divested of the company and invested. An ESOP works great as an exit strategy for an owner who needs a buyer and wants to transfer ownership of the company to the employees. If your hypothetical owner is not interested in doing this perhaps a cross tested plan or defined benefit plan would be a better fit.

Leonard, If the company is a c-corporation and the owner qualifies for a 1042 election (in part by selling at least 30% of the company to the ESOP) he can invest the proceeds from the sale tax free. Thus, depending on the size of the company he could get the $560,000 all right now. This would allow it to grow to significantly more than $560,000. Another option would be for the owner just to receive his prorata share of the shares based on his compensation. I have seen where in a small company the owner can actually benefit more this way than if he had elected 1042. However, if the company is an s-corporation 1042 is not an option. Also ESOPs do not work well for small s-corporation companies due to the 409(p) restrictions. Good luck on your project.

Is it alcohol and caffeine free?

So do they amend the Top Heavy vesting schedule as well or are we one step closer to eliminating Top Heavy requirements?

Perhaps it's on the rise again I spoke too soon- excerpt below "The beer is currently brewed in La Crosse, Wisc., and is available in 16-ounce cans. The investor group plans to move production to the High Falls Brewery in Rochester, N.Y., next month. Hellendrung said the company also plans to have a small brewery operation in Providence. The beer is available in about 250 bars, restaurants and liquor stores in Rhode Island and southeastern Massachusetts, about double its distribution before the investors acquired the brand, Hellendrung said."

Hi Neighbor, have a 'Gansett Alas, it seems the brewery is no more...

Maybe it's just me but if I receive a safe harbor notice and fill out an election form I think I would notice before 1 month went by that nothing was being taken out of my check and that I was not receiving statements and that nothing was being taken out of my check... As for correction perhaps depositing 4% of compensation with earnings for the staff.

He could be catch-up eligble.

By the way each of those players hit 50 Home Runs in a season.

WDIK- you KNEW this one... Brady Anderson Brady Kevin Anderson Bats Left, Throws Left Height 6' 1", Weight 185 lb. School University of California, Irvine Debut April 4, 1988 Final Game May 20, 2002 Born January 18, 1964 in Silver Spring, MD In 1996 he had 50 home runs. In no other year did he hit more than 24

#29 is a Billy Bob Thronton movie #39 An ensemble comedy about five guys, all in their twenties, all coping with the mysteries of life and women, and is set in the back streets and sometimes hidden clubs of Hollywood. It's a story told in the language of the cocktail nation, a growing twentysomething retro-Swing dance movement that's taken Hollywood by storm and is beginning to sweep the nation. Mike is down in the dumps because he left his girlfriend behind in New York when he came to Hollywood to seek his acting fortune. Instead, he's found loneliness and the blues. Now, after six months of dealing with Mike, his buddy Trent and the other swingers have had enough. It's time to bring Mike back to life. #52 Tagline: This Christmas, Santa's Got A Brand New Bag #53 Tagline: 3% Body Fat. 1% Brain Activity. Plot Outline: At the end of his career, a clueless fashion model is brainwashed to kill the Prime Minister of Malaysia. #59 Plot Outline: A star bowler whose career was prematurely "cut off" hopes to ride a new prodigy to success and riches.

You can also try: Accurint

Also Accurint

Yes, that is the plot for movie 48. Not that that particular plot would help much unless perhaps you knew you should party like it's 1999. (We are only missing 4,5,12,13,23, 24, and 57).

We have 48 of the 60 movies (including #48). Inclding #48: PLOT: A young man with a talent for music has begun a career with much promise. He meets an aspiring singer, Apollonia, and finds that talent alone isn't all that he needs. A complicated tale of his repeating his father's self destructive behavior, losing Apollonia to another singer (XXXXXX XXX), and his coming to grips with his own connection to other people ensues.

ok- we are up to 48 and could use some additional clues (although the clue above has not helped us get #15, yet...) cac1134, you can download the spreadsheet and e-mail it to others.

Tom, thanks for the entertainment.