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Full Version: Does 404(k) allow a deduction for passing through dividends attributab
BenefitsLink Message Boards > Retirement Plans > Employee Stock Ownership Plans (ESOPs)
stephen
Does 404(k) allow a deduction for passing through dividends attributable to unallocated shares?
RLL
Yes. Nothing in IRC Section 404(k) would deny the deduction for "passing through" dividends on unallocated shares to the ESOP participants. The ESOP would have to include provisions allowing for such "pass through" and for the allocation of such dividends to participants on a nondiscriminatory basis.
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