ESOP Technical Issues Web Seminar – October, 2011

Below you will find the links to watch each of the Technical Issues Webinar Sessions On-Demand: Session 1: Introduction What is an ESOP? History of ESOPs CLICK HERE TO WATCH SESSION 1 Session 2: Retirement Plan Basics Qualified vs. Nonqualified plans Types of Plans CLICK HERE TO WATCH SESSION 2 Session 3: Basic ESOP Transactions Prefund Stock Contributions Leveraged ESOPs Section 1042 Transactions CLICK HERE TO WATCH SESSION 3 Session 4: Plan Operation Features Eligibility Requirements Participation/Benefit Allocations Vesting Distributions CLICK HERE TO WATCH SESSION 4 Session 5: Repurchase Obligation Repurchase Liability Studies Funding the Repurchase Obligation CLICK HERE TO WATCH SESSION 5 Session 6: Administration/Recordkeeping Disclosure Requirements Administration Procedures Administration Pitfalls Lost Participants Lost Beneficiaries CLICK HERE TO WATCH SESSION 6 Session 7: Special Problem Areas of Administration Contributions in Excess of 415 Limits Excess 401(k) Deferrals CLICK HERE TO WATCH SESSION 7 Session 8: Accounting Issues Balance Sheet ... Read More..

Contribution and Allocation Limitations

CONTRIBUTION AND ALLOCATION LIMITATIONS FOR PLAN YEARS ENDING IN 2009 Date: January 2010 C CORPORATION CONTRIBUTION LIMITATIONS (Sec. 404 of the Code): Example: (The Sec. 404 limit is calculated for all employer plans in the aggregate.) Sec. 404 Gross Compensation 1 $245,000.00 Less Sec. 401(k) Salary Reduction 0.00 Less Sec. 125 Salary Reduction 0.00 Net Compensation $245,000.00 x 25% (or 50% if the ESOP is leveraged)2 x 25% Maximum Total Contribution to All Plans 3 $61,250.00 Less Sec. 401(k) Salary Reduction 0.00 Less Employer Matching Contribution ( 2,000.00) Less Employer Discretionary Contribution ( 2,000.00) Maximum ESOP Contribution (Sec. 404) $57,250.00 It should be noted that compensation in excess of $245,000 per individual is excluded for purposes of Sec. 404, but not for purposes of Sec. 415. In the case of C corporation, company contributions are limited to 25% of eligible payroll, provided that the ESOP is not leveraged. If the ESOP is ... Read More..