stephen

Since an MRD cannot be rolled over I expect you would not have mandatory withholding. However, the participant could elect withholding at the state or federal level.

Yes, you could have a plan design that allows for a match true up throughout the year.

hwilliams, Your third party administrator should be able to do the matching calculation for you. Of course this assumes you are using a TPA for your plan.

415 Limit: 41k (end of plan year limit) Comp Limit: 200K (beginning of plan year) Soc Sec TWB: 87K (also beginning of plan year)

What will the plan do with the stock? Sell it or transfer it to the company? If the company is buying the stock you will need to have a valuation for each transaction date.

1. What I have done in this instance is set up another account (Debt Service) for all of the participants and allocate the receivable contribution to this account. Then in the following year when you calculate the release you can use this account to show the debt being repaid and the shares being released. Make sure you are following the release method between the ESOP and the company. Often with S-Corp loans they do not meet the requirements to be a principal only release and are released on principal and interest. Thus, there would be some shares released on the interest portion of the debt payment. 2. Yes, you can make a contribution to the plan that will be allocated based on the plans allocation formula (usually based on prorata share of eligible compensation). Then use this cash to repurchase the shares from the terminated employees and then pay them out.

pamcduff - It's no rumor. The first game in Fenway next season features the Red Sox vs. the Yankees. Thus the Red Sox will be unveiling their 2004 World Series Champion banner in front of the Yankees! IT"S GREAT! GO SOX GO! (edited as I concur with Bob K's comments regarding the 2005 MLB schedule)

So tell me why the city of Boston would schedule a victory parade for Saturday if they win tonight or Sunday if they win tomorrow night and make the parade public knowldge? This is crazy! Here I was thinking they woulr wrap it up in ST. Louis and lo and behold they giftwrap motivation for the Cardinals... How dumb can they be? (Oh yeah, thius is the same city that is still working on the BIG DIG...) GO SOX GO!

Or you could support the hapless Pirates who have not even had a winning season since losing to the Braves in games six and seven of the 1991 NLCS. The 1992 Series 7th game would be more memorable and more misery for the Pirates. GAME 7 AT Atlanta, October 14th, 1992 PIT 100 001 000 2 7 1 ATL 000 000 003 3 7 0 Pitchers PIT - DRABEK, Belinda (9) ATL - Smoltz, Stanton (7), Smith (7), Avery (7), REARDON (9) Attendance 51,975 Sadly whichever of this years teams wins the World Series they will have the same number of Championships since as the Braves (since their current streak began) have even though the Braves have won their division every year since then. (Sorry Pax, but that's the way it is...)

You're just upset that the Brave's lost in the playoff's yet again. Maybe they'll win the division again next year.

Now we know it's the Cardinals heading to Boston- Will the curse be broken? These teams met in the 1946 and 1967 World Series with both ending with the Cardinal's winning the 7th game. The Red Sox also lost the 7th game of the World Series in 1975 to Cincinnati and in 1986 to the NY Mets. GOOD LUCK TO THE RED SOX!

Tom's comment about the yankees payroll: priceless

no

Yes last night's game was great! It seems I have heard this for three nights in a row now. Hopefully, we can say the same tomorrow about tonight's game seven. GO SOX GO!

quinn the car fixer - why don't you listen to your Jungle rerun tape and leave the chowds alone; they have enough to worry about ...

www.nceo.org and www.esopassociation.org are good sites to go to for more information and to look for advisors. The ESOP association sponsors a technical conference every November in Las Vegas that would be beneficial. They also sponsor an S-Corp conference in February in Orlando and a general ESOP conference in May in Washington DC amongst other conferences. Note, it seems IRC section 409p will apply to your plan. I strongly suggest you get an ESOP advisor to make sure this will not be an issue for your plan. 409p requires broadly held ownership within the ESOP or there are stiff penalties. Feel free to e-mail me for additional information.

Points taken- I hope sue1jeff has the insurance needed...

or Pax- it will happen today as there are only about 12 posts to go...

GBurns, perhaps I misunderstood the original post but I think sue1jeff was the employer of the employee they would like to sue and it seems you are suggesting sue1jeff sue themselves as the employer? I do agree that if the tpa firm had the general liability and E&O insurance that this should be used to reimburse the client for the neglegence of the former employee.

Bird, It is my understanding that if you make cash distributions under the employer's EIN number that you would not have to file a schedule R. However, if the distributions are paid using any other EIN (e.g. a trust ID number or another payor such as a mutual fund company or a bank) then the schedule R must be filed. stephen

GO RED SOX! BEAT THE yankees!

I hope DP returns to the topic to see the dissenting points of view. I agree the conservative approach is to vest the participants but who's decision is it? The TPA's, doubtful. The plan's attorney or perhaps the doctor? Another question that comes to mind is: How much money is involved?

Are you required to file a schedule R for a profit sharing plan with no in-kind distributions?

Check the plan document as it should address the allocation of dividends on allocated and unallocated shares. Often, the dividend on the allocated shares will be allocated on the basis of the allocated shares. However, this is not necessarily the case. Meanwhile the dividend on the unallocated shares can be used to pay on the note (for c-corps), allocated based on compensation, or on some other basis.

If yes, please provide the name of the software and why it works well for you (along with any problems you have). Thanks!