Jump to content

ESOP Loan paid off, time to pay terminees

Recommended Posts

Ten-year-old ESOP, loan is now paid off.  We're planning for 2020 and trying to determine how much to pay the terminees.  Plan provides for typical 5 installments for distributions over $5,000 in the year following the year in which the loan is paid off.  For example, a participant retired in 2017 with a $100,000 benefit was supposed to begin receiving distributions in 2018, but did not due to the outstanding loan.  In 2020, does he receive $60,000 ($20,000 for 2018, 2019 and 2020)?  Or does he receive $33,000 (1 of 3 remaining installments due)?

Link to comment
Share on other sites

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 account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...