Guest amboyd Posted March 27, 2003 Posted March 27, 2003 Can an ESOP provide for in-service distributions upon attainment of age 59 1/2? If so, must the in-service distribution section be drafted to comply with 409(d) of the Code (i.e. age 59 1/2 with account balance credited for at least 84 months).
RLL Posted March 28, 2003 Posted March 28, 2003 amboyd --- An ESOP may provide for in-service distributions upon attainment of age 59-1/2. Only tax credit ESOPs (TRASOPs and PAYSOPs) must comply with the 84-month rule.
Guest amboyd Posted March 28, 2003 Posted March 28, 2003 Why is this not a common provision in ESOPs?
RLL Posted March 28, 2003 Posted March 28, 2003 In a closely-held company ESOP, such a provision would accelerate the repurchase obligation.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now