Convert 401 to ESOP to get 404(k) deduction

[RLL]

Hi QDROphile ---

Perhaps it is a bit complicated....but with intelligent application of modern technology, such complications are mere details to be handled by the technicians and their machines.

If employers wish to make such flexible 401(k) arrangements (involving investments in company stock) available to their employees and also want to claim the full tax benefits available for employee ownership programs, they'll just have to comply with all the various technical rules (including testing, if required) necessary to achieve their objectives. Obviously, many have elected to do so.

Also, many employers have chosen to make "safe harbor" KSOP contributions to avoid any complications involved with ADP testing.