These functions return the 409(o)(1)(C) tax credit ESOP limits for lengthening the distribution period for a given year. Both functions share the same syntax:
·
ESOPLimitA returns the ESOP payout 5-year amount under 409(o)(1)(C)(i).
·
ESOPLimitB returns the ESOP payout additional 1-year amount under 409(o)(1)(C)(ii).
ESOPLimitA and ESOPLimitB for year 𝑥 are based on the
following formula:
|
Where 𝐶𝑃𝐼𝑦𝑒𝑎𝑟 is the “3rd
quarter CPI” (sum of the CPI-U for the months of July, August, and September)
in the given year. (September CPI is usual published around October 13.) If the amount so determined is not a multiple of $5,000,
it is rounded to the nearest multiple of $5,000. Not less than the amount for
the prior year. Note: ·
Prior to 1987 there was no limit. ·
From 1987 through 2001, the limit was $500,000 for ESOPLimitA, $100,000 for ESOPLimitB , indexed for the increase in 4th quarter CPI ($5,000 rounding beginning in 1995). |
Syntax
ESOPLimitA (DeterminationYear, [LawYear],
[Inflation])
ESOPLimitB (DeterminationYear, [LawYear],
[Inflation])
|
Parameter Name |
Description |
|
DeterminationYear |
A
4 digit number, or an optional text value as shown in the table below. If the
DeterminationYear is after the LawYear, this is a projected
calculation based on the Inflation assumption. Click to view various options for the DeterminationYear parameter. |
|
LawYear |
A
4 digit number. |
|
Inflation |
The
assumed rate of inflation: the IRS
Cost-of-Living Adjustment for future years, as measured by the
year-over-year increase in CPI-U. This
is used only for a projected calculation. Optional:
default = 0% |