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How do I figure out if my ESOP is allocated or non allocated?

 
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How do I figure out if my ESOP is allocated or non allocated?

You must look at your ESOP paperwork or you can ask your employer.  An ESOP must include a definite formula for allocating employer contributions and forfeitures annually to the individual accounts of plan participants.

Employer contributions to an ESOP are usually allocated among the participants’ accounts in the trust which funds the plan in proportion to the participants’ compensation from the company during the plan year. However, the allocation can also be based on a combination of compensation and years of service with the company. The latter option is more complicated to administer because of IRS rules designed to prohibit discrimination in favor of the highly compensated.


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