SLuskin Posted January 15, 1999 Posted January 15, 1999 A premium only 125 Plan currently has 1 owner/officer. Discrimination testing has been passed. This owner wants to somehow give ownership in the company to the other 6 employees on an equal basis. That means all would own about 14%. There would be no non-key people in the plan. What happens? Do they have to stop the plan or since the plan does not discriminate in favor, can they keep it?
Lisa Hand Posted January 15, 1999 Posted January 15, 1999 How is the company structured? Is it a corporation or a S corporation?
SLuskin Posted January 16, 1999 Author Posted January 16, 1999 It is a C corporation, with no plans to make an S election.
Guest ESOPwizard Posted January 16, 1999 Posted January 16, 1999 I had this problem two months ago and decided that the only insurmountable problem was IRC 129(d)(8), which deals with dependent care.
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