UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


_________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): March 21, 2014



                       KENTUCKY BANCSHARES, INC.
          (Exact Name of Registrant as specified in Charter)


   Kentucky                   33-96358              61-0993464
 (State or other            (Commission            (IRS Employer
  jurisdiction of           File Number)        Identification No.)
  incorporation)


P.O. Box 157, Paris, Kentucky                          40362-0157
(Address of principal executive offices)               (Zip code)


(859)987-1795
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:

__ Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

__ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

__ Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

__ Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
?

INFORMATION TO BE INCLUDED IN THE REPORT

Item 8.01. Other Events

Kentucky Bancshares, Inc. (the Company) terminated the Kentucky
Bancshares, Inc. Retirement Plan and Trust (the Plan) in a standard
termination, with a termination date of December 31, 2008.  Prior to
such termination, the Pension Protection Act of 2006 (PPA) had amended
Internal Revenue Code (IRC) Section 417(e)(3) in part by changing the
definition of applicable interest rate in a manner that in most cases
(when combined with other changes to IRC Section 417(e)(3)) would
result in a decrease in the value of a participant's or beneficiary's
plan benefits under pension plans such as the Company's Plan with the
new definition applicable (for most plans, including the Plan) to lump
sums with annuity starting dates in or after the 2008 plan year.  The
Plan had determined in mid-2008 to comply with IRC Section 417(e)(3),
as amended by PPA, by using the assumptions governing minimum lump
sums, rather than by using the pre-PPA minimum lump sum assumptions,
and operated the Plan in compliance with that decision.  As permitted
by the IRC, the Plan was amended on February 24, 2009 (after the
termination of the Plan on December 31, 2008) to formalize that
decision in accordance with Section 1107 of PPA.

The Internal Revenue Service issued a favorable determination as to the
Plan termination in July 2010.  Subsequent to Plan termination and
distributions to Plan participants, the Plan was selected for audit by
the PBGC.  The PBGC asserted that the February, 2009 amendment to the
Plan violated PBGC Regulation Section 4041.8(a) because the amendment
served to lower benefits to Plan beneficiaries.  The PBGC filed a
Complaint in May 2013 in United States District Court (Eastern District
of Kentucky) to require the Company to make additional distributions to
Plan beneficiaries.  On March 17, 2014, the United States District
Court (Eastern District of Kentucky) issued an Opinion and Order
entering judgment in favor of the PBGC and ruling that the Company must
comply with the PBGC's determination respecting the Plan.  The Company
is appraising its options with respect to this judgment, including an
appeal of the decision.  However, in light of the court's opinion, the
Company has now accrued approximately $1.6 million as of December 31,
2013 for this matter.  After taking into account income tax adjustments
and indemnification undertakings from professionals who assisted the
Company in the termination of the Plan, the impact is an approximate
$470,000 decrease to the net income disclosed on Form 8-K filed by the
Company on January 31, 2014.  Moreover, in the event the subject court
decision is not overturned, the Company believes it has claims for
further contribution towards payment of this liability from
professionals who assisted the Company in the termination of the Plan.
SIGNATURE

       Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                           KENTUCKY BANCSHARES, INC.


Date: March 21, 2014                By      /s/ Gregory J. Dawson___
                                                    Gregory J. Dawson
                                                    Chief Financial Officer
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{"company-data": {"conformed-name": "KENTUCKY BANCSHARES INC /KY/", "cik": "0001000232", "assigned-sic": "6022", "irs-number": "610993464", "state-of-incorporation": "KY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-52598", "film-number": "14710249"}, "business-address": {"street1": "4TH & MAIN ST", "street2": "P O BOX 157", "city": "PARIS", "state": "KY", "zip": "40362-0157", "phone": "859-987-1795"}, "mail-address": {"street1": "4TH & MAIN ST", "street2": "PO BOX 157", "city": "PARIS", "state": "KY", "zip": "40362-0157"}, "former-company": {"former-conformed-name": "BOURBON BANCSHARES INC /KY/", "date-changed": "19950907"}}
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 21, 2014

                       KENTUCKY BANCSHARES, INC.
          (Exact Name of Registrant as specified in Charter)

   Kentucky                   33-96358              61-0993464
 (State or other            (Commission            (IRS Employer
  jurisdiction of           File Number)        Identification No.)
  incorporation)

P.O. Box 157, Paris, Kentucky                          40362-0157
(Address of principal executive offices)               (Zip code)

(859)987-1795
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:

__ Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

__ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

__ Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

__ Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
?

INFORMATION TO BE INCLUDED IN THE REPORT

Item 8.01. Other Events

Kentucky Bancshares, Inc. (the Company) terminated the Kentucky
Bancshares, Inc. Retirement Plan and Trust (the Plan) in a standard
termination, with a termination date of December 31, 2008.  Prior to
such termination, the Pension Protection Act of 2006 (PPA) had amended
Internal Revenue Code (IRC) Section 417(e)(3) in part by changing the
definition of applicable interest rate in a manner that in most cases
(when combined with other changes to IRC Section 417(e)(3)) would
result in a decrease in the value of a participant's or beneficiary's
plan benefits under pension plans such as the Company's Plan with the
new definition applicable (for most plans, including the Plan) to lump
sums with annuity starting dates in or after the 2008 plan year.  The
Plan had determined in mid-2008 to comply with IRC Section 417(e)(3),
as amended by PPA, by using the assumptions governing minimum lump
sums, rather than by using the pre-PPA minimum lump sum assumptions,
and operated the Plan in compliance with that decision.  As permitted
by the IRC, the Plan was amended on February 24, 2009 (after the
termination of the Plan on December 31, 2008) to formalize that
decision in accordance with Section 1107 of PPA.

The Internal Revenue Service issued a favorable determination as to the
Plan termination in July 2010.  Subsequent to Plan termination and
distributions to Plan participants, the Plan was selected for audit by
the PBGC.  The PBGC asserted that the February, 2009 amendment to the
Plan violated PBGC Regulation Section 4041.8(a) because the amendment
served to lower benefits to Plan beneficiaries.  The PBGC filed a
Complaint in May 2013 in United States District Court (Eastern District
of Kentucky) to require the Company to make additional distributions to
Plan beneficiaries.  On March 17, 2014, the United States District
Court (Eastern District of Kentucky) issued an Opinion and Order
entering judgment in favor of the PBGC and ruling that the Company must
comply with the PBGC's determination respecting the Plan.  The Company
is appraising its options with respect to this judgment, including an
appeal of the decision.  However, in light of the court's opinion, the
Company has now accrued approximately $1.6 million as of December 31,
2013 for this matter.  After taking into account income tax adjustments
and indemnification undertakings from professionals who assisted the
Company in the termination of the Plan, the impact is an approximate
$470,000 decrease to the net income disclosed on Form 8-K filed by the
Company on January 31, 2014.  Moreover, in the event the subject court
decision is not overturned, the Company believes it has claims for
further contribution towards payment of this liability from
professionals who assisted the Company in the termination of the Plan.
SIGNATURE

       Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                           KENTUCKY BANCSHARES, INC.

Date: March 21, 2014                By      /s/ Gregory J. Dawson___
                                                    Gregory J. Dawson
                                                    Chief Financial Officer