First Year for an ESOP Plan

[Jilliandiz]

I have a new ESOP, therefore I am filing the first 5500. Here is my question. The employer deposited $175,000 for the first year, allocating about 4% to everyone. The beginning balance was obviously $0 and the deposit of $175,000 was deposited on the last day of the plan year. Therefore, the account balance at the Bank looks like this:

Plan Year 2/1/02 - 1/31/03

$175,000 deposited on - deposited 1/31/03

$10.45 paid in interest - year to date interest

$175,010.45 - balance of the account

Do I just need to show that deposit of $175,000 on Schedule I and the interest of $10.45?

I'm not sure how fill it out Schedule I?

Thanks.

[BeckyMiller]

Yes - for the first year where the purchase of stock has not yet happened, the ESOP looks like a profit sharing plan. Now, I am assuming the purchase of stock has not yet happened. If there is a leveraged purchase of shares, but not payments have been made on the loan, you will need to show an asset for the shares at current value and a liability for the related debt.