Blue Ridge ESOP Associates Industry News

Scott J. Freund, QPA

Recent Posts

IRS/DOL Corner - March 2020

Posted by Scott J. Freund, QPA

Mar 31, 2020 9:23:31 AM

The Setting Every Community Up for Retirement Act (known as the SECURE Act) was signed into law by President Trump on December 20, 2019.   This bill created changes to a number of rules related to Qualified Retirement Plans, including ESOP’s and 401(k).  Some of the highlights of the bill include the following:

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Dividend Rules for ESOP Companies

Posted by Scott J. Freund, QPA

Nov 15, 2016 1:41:38 PM

Many C Corporation companies who sponsor an Employee Stock Ownership Plan elect to pay dividends to their ESOP.  This article will provide a summary of the rules that the company needs to follow if they wish claim a deduction on the dividends paid to the ESOP.

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Topics: S-Corp, Dividend Rules, IRC, C-Corporation

Don't Forget the Share Certificates

Posted by Scott J. Freund, QPA

Jul 20, 2016 11:54:27 AM

Most privately held companies rely on physical share certificates which serve as the official record of ownership. This practice requires ESOP Companies to maintain share certificates in the name of the ESOP for the shares owned by the ESOP.  Those share certificates are generally held by the trustee of the ESOP.

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Topics: Certificates

Electronic Disclosure Requirements for Plan Notices

Posted by Scott J. Freund, QPA

Feb 20, 2015 5:17:20 PM

email_vs_mailIn this day and age we are increasingly reliant on receiving information electronically. With the desires to “Go Green”, many companies rely on electronic delivery of information to their clients. With respect to required ESOP notices, however, it is important to understand the rules of what can be delivered electronically to participants, and how those notices must be delivered. As an example, just putting a copy of your Summary Plan Description (SPD) on your company website may not be a sufficient method of delivering that document to your employees.

The Department of Labor (DOL) issued a regulation in 2002 which is commonly referred to as a “Safe Harbor” method for delivery of plan disclosure documents. Documents such as the SPD, Summaries of Material Modification to the SPD (SMM) and Summary Annual Reports (SAR) can be electronically posted to a website for participants to access. These electronic accesses to those plan documents though are limited to two categories of participants:

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Topics: Government & ESOPs