133(a) allows a bank to exclude from gross income 50% of the interest received on loans to leveraged employee stock ownership plans
(ESOPs) or their sponsoring corporations, to the extent that the loan proceeds are used to acquire employer securities for the plan.
As a component of its continued enforcement initiatives for qualified plans, the IRS has released final guidelines for use by employee plans examiners when examining plans for qualified joint and survivor annuity and single-sum distribution issues.(33) The IRS also released for public comment its proposed field agent examination guidelines for leveraged employee stock ownership plans
(ESOPs), plans that may be top heavy, and limitations for defined contribution plans.