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ESOP Plan Administration

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ESOP Plan Administration is critical to overseeing the day-to-day operations of an ESOP (Employee Stock Ownership Plan). ESOP Plan Administrators direct the ESOP trustee on critical plan administration decisions such as voting shares or even serve as trustee, in a limited advisory role. An ESOP Plan Administration team will seamlessly assume responsibility for oversight of your ESOP, making sure statements go out, participants are paid, allocations are properly made. Most importantly, the ESOP Plan Administration team (ESOP Administrators) serves as a unified voice, communicating ESOP details to participants, even overseeing the company’s employee involvement program.

ESOP Plan Administration services offered by SES Advisors:

  • Provide custom participant statements and management reports
  • File annual reports (Form 5500 and Summary Annual Report)
  • Write diversification notices
  • Prepare annual government filings, including 1099-R and 1099-DIV forms
  • Give voting instructions
  • Complete benefit distribution forms
  • Notify customers of various deadlines pertaining to the ESOP
  • Test for compliance (top heavy, annual additions, coverage, contribution limits) and nondiscrimination (ADP and ACP)
  • Customize management and compliance reports
  • Design amendments to ESOP Plans

ESOP Plan Administration insight brought to you by SES Advisors:

Client Update:
The Language of ESOPs
Client Update: The Language of ESOPs June 27, 2016 By Tina Fisher (215.508.7717, Does it ever seem like the world of retirement plans (especially ESOPs) speaks a different language?  Words are constantly being used that you do not hear in normal conversation, and to add to the confusion depending on who is using the words... Read More

Client Update: Annual Allocation ESOP Process
Client Update: Annual Allocation ESOP Process March 24, 2016 By Tina Fisher (215.508.7717, The annual allocation ESOP process can seem overwhelming with multiple deadlines, advisors, and moving parts to monitor. Not only are there deadlines for disclosures to participants and filing with government agencies, but the Company may have employee meetings or events that... Read More

Client Update: Why You Need a Repurchase Obligation Study for Your ESOP
Download a PDF of the article here Client Update: Why You Need a Repurchase Obligation Study for Your ESOP January 27, 2016 By Tina Fisher (215.508.7717, ERISA requires ESOP companies to be prepared to buy stock back from participants who receive distributions from the ESOP. Such companies are also required to provide liquidity when... Read More

What You Need to Know for Tax Reporting Season
Download a PDF of the article here Client Update: What You Need to Know for Tax Reporting Season November 30, 2015 By Kelly Irizarry (215.508.5631, The holiday season is upon us. For sponsors of qualified retirement plans, that means it’s time to turn at least a small portion of our attention to a vastly less... Read More

ESOP Plan Administrators answer your questions: How often does ESOP stock have to be re-valued?
Company stock held by an ESOP must be value at least annually typically at the end of the sponsor’s fiscal year. If the ESOP is buying or selling stock, the shares must be appraised as of the transaction date. Read More

ESOP Plan Administrators answer your questions: How are the company's contributions to the ESOP allocated among ESOP participants?
An ESOP must include a definite formula for allocating employer contributions and forfeitures annually to the individual accounts of plan participants. Usually, employer contributions to an ESOP are allocated among the participants’ accounts in the plan based on their compensation from the company during the plan year. However, the allocation can also be based on... Read More

ESOP Plan Administration: Rebalancing and Reshuffling
Two of SES Advisors’ most senior ESOP Plan administrators explore the pros and cons of account segregation and account rebalancing. Segregation allows the plan to convert the shares of terminated participants to other investments. Rebalancing provides a source of shares for new participants. Find out if either of these ESOP Administration services may work for... Read More

ESOP Plan Administration Pitfalls
Two of SES Advisors’ Senior ESOP Plan Administrators tackle some of the most confusing areas of ESOP administration and explain how to avoid falling into trouble. Topics include: synthetic equity & how it affects anti-abuse testing pursuant to IRC Section 409(p); identifying partial plan terminations & the consequences associated with them; when hours are credited... Read More

ESOP Plan Administrators reveal: ESOP Accounting
ESOPs have complicated and unique accounting implications. SES Vice President Brian Wurpts guides ESOP account administrators, controllers, accounting departments and CPAs through ESOP accounting concepts and practical examples of financial statements conforming with GAAP. Presented by Brian D. Wurpts, Principal & Vice President – SES Advisors, Inc. Read More

ESOP Plan Administrators answer your questions: Why Is My Record Keeper Asking for That?
ESOP Plan Administrators answer your record keeping questions with this downloadable eBook (PDF). It is that time of year when you are responding to year-end data requests from your ESOP record keeper. You may be wondering why he/she truly needs all this information. In order to maintain compliance with extensive Internal Revenue Service and Department... Read More

ESOP Plan Administrators reveal: Utilizing 401(k) Matching Contributions in the ESOP Trust
ESOP Plan Administrators reveal their best advice for utilizing 401(k) matching contributions in this downloadable eBook (PDF).  There are two traditional practices for getting cash into the ESOP trust: (i) using employer contributions and/or (ii) using income distributions/dividends. We would like you to consider using a third mechanism – the employer matching ESOP contributions that... Read More

ESOP Plan Administrators on: Teamwork: Plan Sponsor & ESOP Recordkeeper
Top ESOP Plan Administrators reveal how teamwork is the key to ESOP success in this downloadable eBook (PDF). Each year during the allocation process, most Plan Sponsors have to compile census data for submission to their third party ESOP recordkeepers. In order to make this process run as smoothly as possible it is important that... Read More

ESOP Plan Administration Advisory Committee
One of the most complicated and sometimes confusing aspects of ESOP administration is determining the compensation required for various plan purposes. Compensation impacts many different areas of administration including: (1) allocations to participants, (2) determination of highly compensated employees (HCEs) and key employees, (3) nondiscrimination testing, (4) maximum annual additions to participants, the employers maximum deductible contribution, and (5) top... Read More

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