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ESOP Operational Issues

Section 409(p) Testing (Part 5)

Nancy Dittmer

September 9, 2016

(Nancy Dittmer)At long last, here is the final installment in my series on Section 409(p). As noted in Part 2, violating Section 409(p) should definitely be avoided. So what steps are available to prevent a Section 409(p) failure?

The steps to avoid violation of these rules may vary depending upon the cause of the potential violation. Also, any preventive measure must be otherwise permissible. I.e., it cannot violate other qualified plan rules. Some possible alternatives include:

There may be other steps that can be taken based on your specific facts. As always, please consult with your advisors.

Author biography and other columns in this series

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