BASIC ESOP ADMINISTRATION - The ESOP Association

More documents

Recommendations

Info

John Burgess - Seyfarth Shaw LLPJonathan Markham – Blue Ridge ESOP AssociatesHighly Compensated Employee (HCE)Determination – 414(q)• 5% Owner – Any employee who owns more than 5%of the Employer, regardless of compensation, duringthe current or preceding plan year. Certain familyattribution rules apply.• Top Paid – Employees who receive compensationfrom the Employer in excess of $115,000 (adjustedfor cost of living)▫ Top Paid Group – The number of HCEs can be limitedto the top 20% of all employees in the company.• This election must be used by all of the Employer’s plansand must be written into the plan document.
John Burgess - Seyfarth Shaw LLPJonathan Markham – Blue Ridge ESOP AssociatesKey Employee Determination –416(i)(11)• 5% Owner – Any employee who owns more than 5% ofthe Employer, regardless of compensation. Certainfamily attribution rules apply.• 1% Owner – Any employee who owns more than 1% ofthe Employer and whose annual compensation exceeds$150,000• Officer – Any employee who is an officer and whoseannual compensation exceeds $165,000 (adjusted forcost of living)▫ The number of officers is limitedNumber ofEmployeesMaximumNumber ofOfficers30 or less 331-500 10%501 or more 50
Page 1 and 2: BASIC ESOP ADMINISTRATIONESOP Invit
Page 3 and 4: John Burgess - Seyfarth Shaw LLPJon
Page 19: John Burgess - Seyfarth Shaw LLPJon

BASIC ESOP ADMINISTRATION - The ESOP Association

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?