Voting Rights
Each participant is entitled to exercise voting rights attributable to the shares of the Company’s common stock allocated to his or her account and is notified by the transfer agent, Computershare, prior to the time such rights are to be exercised.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of the IRC and ERISA.
CARES Act
On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which, among other things, allows a participant who is deemed a “qualified individual” to withdraw up to $100,000 in aggregate from the Plan during 2020. The usual 10% early withdrawal penalty is waived, and the 20% mandatory federal income tax withholding is also waived; however, the distribution remains subject to federal income tax. Participants may elect to pay the federal income tax on the distribution ratably over three years, or they have the option to repay the distribution within the 3-year period to the Plan.
In addition, loan limits for “qualified individuals” were increased to 100% of vested account balance, up to $100,000, for 180 days from the enactment of the CARES Act. New or existing loan payments through December 31, 2020 may be delayed for one year.
Further, all required minimum distributions for 2020 have been waived. There are no coronavirus eligibility requirements associated with this change. Any distributions received in 2020 are eligible for rollover.
Finally, any spousal consent provisions associated with the Plan have been suspended during 2020 to make it easier for participants to take distributions in the event of need.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
The accompanying financial statements have been prepared under the accrual method of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
The Plan’s investments are reported at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 820, “Fair Value Measurement” (“ASC 820”). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan’s Benefit Trust Committee determines the Plan’s valuation policies utilizing information provided by the investment advisors and Trustee. These investment