NOTE 1 DESCRIPTION OF PLAN (CONTINUED)
Payment of Benefits
The normal retirement date is the date a participant reaches age 59.5. When a participant reaches the normal retirement date, terminates employment with the
Bank, becomes totally disabled, or dies while participating in the Plan, they are entitled to receive the vested amount in their individual account.
If a
participant dies before receiving all of the benefits in their account, the surviving spouse will receive the remainder in the participants account as, a lump sum or in installments. If the participant is not married at the time of death, the
participants beneficiary may elect to receive the remainder in the account in either a lump sum or in installments.
If benefits are elected to be
received in installments, the installments may be made monthly, quarterly or annually over a period not to exceed the participants life expectancy or the joint life expectancy of the participant and designated beneficiary at the time the
election is made.
Forfeitures
Prior to 2018, in the
event a participant terminated prior to becoming fully vested the unvested portion of the participants matching and profit sharing contributions represented forfeitures. Matching contribution and profit sharing forfeitures reverted back to the
Plan and were allocated to all active participants based on relative compensation.
Forfeitures, including employer matching and profit sharing
contributions, allocated to active participants aggregated $0 and $1,626 at December 31, 2018 and 2017, respectively.
Year-end
participant balances of the accounts after forfeiture were $0 at
December 31, 2018 and 2017, respectively.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of the significant accounting and reporting policies applied in the presentation of the accompanying financial statements follows:
Basis of Accounting
The financial statements of the Plan
are prepared on the accrual basis of accounting.
Use of Estimates
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles. In preparing the financial statements, management
is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosures of contingent assets and liabilities. Actual results could differ significantly from those estimates.
Notes Receivable From Participants
Notes receivable from
participants are measured at their unpaid principal balance plus any accrued by unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No
allowance for credit losses has been recorded as of December 31, 2018 or 2017. If a participant ceases to make loan repayments and the Plan Administrator deems the participant loan to be in default, the participant loan balance is reduced and a
benefit payment is recorded.
Valuation of Investments and Income Recognition
The Plans investments are stated at fair value. The fair value of mutual funds is determined using the quoted net asset value of the specified fund. The
fair value of CSB Bancorp, Inc. common stock is determined based on a quoted market price. Cash equivalents are valued at cost, which approximates fair value.
The net appreciation (depreciation) in fair value of investments includes gain and loss on investments purchased and sold, as well as held during the year.
Purchases and sales of investments are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend
date.
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