Forfeitures
Forfeitures from non-vested participants accounts are used to reduce future Company contributions
or to pay for administrative expenses. As of December 31, 2019, and 2018, forfeited non-vested accounts totaled $162,340 and $127,079, respectively. During 2019, $153,883 of the forfeitures was used to
pay certain administrative expenses.
Participant Accounts
Each participants account is credited with the participants contributions and the related Company contributions. Plan earnings and
losses are allocated to participant accounts based upon account balances.
Payment of Benefits
Prior to termination of service, a portion of a participants contributions may be withdrawn under financial hardship upon written notice
in such form as prescribed by the Benefits Committee. Upon withdrawing from the Plan, participants generally receive a full disbursement of their vested account balances. Any participant who has not attained the age of 59 1/2 may be subject to a 10% penalty and applicable income taxes. Upon termination of employment, a participant may receive a distribution
of the value of his account. Upon the death of a participant, the value of such participants account shall be distributed to his beneficiary. The value of any distribution will be determined as of the valuation date coinciding with or
immediately following the participants termination of employment.
Notes Receivable from Participants
Participants may request a loan from the Plan up to 50% of their vested account balance, to a maximum of $50,000 with a minimum loan amount of
$1,000. Interest is charged to participants based on the prime rate plus 2%, or other such rate as determined by the Plan administrator. A participant may have no more than two loans outstanding at a time. A maximum of 60 months is allowed for all
loan repayments with the exception of purchasing a home, when the amortization period can extend to 120 months. Loans are repaid through payroll deductions and repayment begins the first pay period after disbursement of the loan. Loan defaults
or non-repayment of loan balances by participants are reported as taxable distributions from the loan fund. Interest rates on loans outstanding at December 31, 2019 ranged from 5.25% to 7.50%.
2.
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Summary of Significant Accounting Policies
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Basis of Accounting
The financial statements have been prepared under the accrual method of accounting in conformity with accounting principles generally accepted
in the United States of America (GAAP).
Use of Estimates
The preparation of financial statements in conformity with GAAP requires Plan management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and changes therein, and the disclosure of the contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Risk and Uncertainties
Investment securities are exposed to various risks, such as interest rate, credit risk and overall market volatility. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and those changes could materially affect the amounts reported in these financial statements.
The Plans exposure to a concentration of credit risk is limited by the diversification of investments across participant-directed
fund elections. Additionally, the investments within each participant-directed fund election are further diversified into varied financial instruments, with the exception of the ING common stock fund, which principally invests in a single security.
Investments and Income Recognition
The Plans investments are stated at fair value. Fair value of financial instruments is what would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date. Net appreciation (depreciation) includes the Plans gains and losses on investments bought and sold as well as held during the year.
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