Canadian subsidiary

[lexi]

we have a client who has a US ESOP and a candian subsidiary. the canadian EE do NOT participate in the US ESOP as of yet.

could someone pls tell me:

1) are there any specific changes that have to be made to the ESOP's plan document to reflect the canadians' inclusion (whose income is not pegged to a W-2)?

2) can the ER currently deduct contributions made on the canadian EEs' behalf; and

3) is there anything i am missing (i read the US-Canadian treaty and don't feel like there is any impediment in that to make us shy away from including the Canadian EE)?

i am desperate for guidance on plan drafting.

[BeckyMiller]

I appreciate your frustration on this issue, there is very little information out there. But, this is not a great place for this kind of very specific advice. I know you hate to hear this, but I would strongly advise that you get experienced legal counsel on this matter. I suggest that you consider looking for such counsel in places like Minneapolis, Seattle, etc. States that border with Canada are likely to deal with this issue. The ESOP Association has a directly of legal advisors that is available to members.

Have fun - Becky