§ 2056(b)(8)(B)(ii)

an esop beneficiary

UNDECIDED

0 of 4 settled

  1. 1

    § 2056(b)(8)(B)(ii)

    ALL OF
    “any beneficiary which is an employee stock ownership plan (as defined in section 4975(e)(7))” needs Step 2 an employee stock ownership plan UNDECIDED
    “holds a remainder interest in qualified employer securities (as defined in section 664(g)(4))” needs Step 3 qualified employer securities UNDECIDED
    “to be transferred to such plan in a qualified gratuitous transfer (as defined in section 664(g)(1))” needs Step 4 a qualified gratuitous transfer UNDECIDED
  2. 2

    § 4975(e)(7)

    an employee stock ownership plan

    ALL OF

    The term “employee stock ownership plan” means a defined contribution plan—

    “a defined contribution plan—” Opening words
    “unless it meets the requirements of section 409(h), section 409(o), and, if applicable, section 409(n), section 409(p), and section 664(g) and,” Closing words
    “if the employer has a registration-type class of securities (as defined in section 409(e)(4)), it meets the requirements of section 409(e).” Closing words
    “which is a stock bonus plan which is qualified, or a stock bonus and a money purchase plan both of which are qualified under section 401(a), and which are designed to invest primarily in qualifying employer securities; and” § 4975(e)(7)(A)
    “which is otherwise defined in regulations prescribed by the Secretary.” § 4975(e)(7)(B)

    “In regulations prescribed by the Secretary” leaves this to Treasury. Cited by Reg. § 54.4975-11(a)(1)

    A plan shall not be treated as an employee stock ownership plan unless it meets the requirements of section 409(h), section 409(o), and, if applicable, section 409(n), section 409(p), and section 664(g) and, if the employer has a registration-type class of securities (as defined in section 409(e)(4)), it meets the requirements of section 409(e).

  3. 3

    § 664(g)(4)

    qualified employer securities

    ALL OF

    For purposes of this section, the term “qualified employer securities” means employer securities (as defined in section 409(l)) which are issued by a domestic corporation—

    “employer securities (as defined in section 409(l)) which are issued by a domestic corporation—” Opening words
    “which has no outstanding stock which is readily tradable on an established securities market, and” § 664(g)(4)(A)
    “which has only 1 class of stock.” § 664(g)(4)(B)
  4. 4

    § 664(g)(1)

    a qualified gratuitous transfer

    ALL OF

    For purposes of this section, the term “qualified gratuitous transfer” means a transfer of qualified employer securities to an employee stock ownership plan (as defined in section 4975(e)(7)) but only to the extent that—

    “a transfer of qualified employer securities to an employee stock ownership plan (as defined in section 4975(e)(7)) but only” Opening words
    “the securities transferred previously passed from a decedent dying before January 1, 1999, to a trust described in paragraph (1) or (2) of subsection (d),” § 664(g)(1)(A)
    “no deduction under section 404 is allowable with respect to such transfer,” § 664(g)(1)(B)
    “such plan contains the provisions required by paragraph (3),” § 664(g)(1)(C)
    “such plan treats such securities as being attributable to employer contributions but without regard to the limitations otherwise applicable to such contributions under section 404, and” § 664(g)(1)(D)
    “the employer whose employees are covered by the plan described in this paragraph files with the Secretary a verified written statement consenting to the application of sections 4978 and 4979A with respect to such employer.” § 664(g)(1)(E)