As to most defined contribution plans, the employer may deduct annually an amount not to exceed 25% of the compensation paid or accrued with respect to plan participants. In addition to an ESOP, an employer may, in addition to the usual limits, contribute and deduct the amount of the interest paid with respect to a securities acquisition loan - a loan, the proceeds of which is used to purchase employer securities - and any dividend paid with respect to employer securities which, at the election of a participant, is payable in cash directly to the participant, paid to the ESOP, distributed to the participant or paid to the ESOP and reinvested in employer securities.