Question
I need help with this question Mr. X has 150 shares of XYZ corporation in his ESOP as of December 31, 2018. Mr. X has
I need help with this question
Mr. X has 150 shares of XYZ corporation in his ESOP as of December 31, 2018. Mr. X has 10 years of participation in this ESOP and he will turn age 60 in November of the 2021 plan year. XYZ corporation is going to contribute 20 new shares in each of the three years following the plan year 2018. Mr. X is going to direct the trustee to diversify 20 shares in 2019, 25 shares in 2020, and 5 shares in 2021. During the 90-day period beginning on January 1, 2022, and ending on March 31, 2022, what is the maximum number of shares Mr. X may diversify?
Example and direction.
DIVERSIFICATION REQUIREMENTS: EXAMPLE KMT Corporation maintains an ESOP that uses the calendar year as the plan year. Boris, a participant in KMT Corporation's ESOP, has participated in the ESOP for more than 10 years before reaching age 55. He reaches age 55 in Year 1 End of plan year 1: total 100 shares contributed to account During 90 days following end of plan year can diversify 25 shares Chooses to diversify 10 shares During plan Year 2, an additional 20 shares are contributed to his account End of plan year 2: total 120 shares contributed to account During 90 days following end of plan year can diversify 25% x 120 = 30 shares cumulative less the 10 shares previously diversified = 20 shares Years 3 5 calculated in same manner In 90 days following plan Year 6 can diversify 50%
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