FAQ 3: ESOP--Contribution divided into shares and cash


According to the ESOP instruction manual, I have to put the total contribution dollar amount under the "Show Total Contrb." button, and then code the dollar amount for the cash fund and the share amount for the stock fund under the "Contrib. by Fund" button. I have done that, is this incorrect? It doesn't seem to be working, I still have the contribution going 100% into the cash fund.

I really do not want the share contribution to show as a cash contribution and then a transfer from cash to stock. I want the share contribution to be reflected in the share fund contribution column. I have done this on another stock plan and it worked fine, so I am not sure what I am doing wrong.


The way that you have the contribution coded under those two buttons sounds correct. But, if you don't want to have the entire contribution going to the cash fund first, you will need to change your source spec coding slightly. Go into the source 2 specs and change the Contribution Fund Split field from "0-Elections" (which directs the entire contribution to fund #1 since almost everyone has a 100% election on the source 2/fund 1 Account Values screen) to "50-Source Fund". After making that change, saving the specs, and re-running calculations, you should then see the input dollar amount going to fund 1 and the input share amount going to fund 3.