March 6, 1995

Legal Tip: Remember Attribution Rules

NCEO founder and senior staff member

In determining whether an ESOP allocation is allowed, don't forget to consider attribution rules. Spouses and dependent children, and possibly others, can have their income attributed to another individual. The spouse of a 25% shareholder cannot receive an allocation subject to a 1042 rollover, for instance. A husband and wife working together at a company would have their incomes added for purposes of the $150,000 allocation limit.