Blue Ridge ESOP Associates Industry News

Taylor Rix

Recent Posts

Keeping Up with Terminated Participants

Posted by Taylor Rix

Oct 22, 2019 9:36:40 AM

Once participants have left the company, it can be easy to lose track of them. Many ESOP’s have distribution policies which delay the time period before distributions begin.  It’s possible for these former employees to maintain balance in the ESOP for five or more years after their termination of employment before they are eligible to request a distribution. There are several important reasons to keep track of these participants. Terminated participants’ balances are factored into some compliance testing and dealing with lost participants years down the road can become a headache quickly.

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Topics: Terminated Participants, Distribution Policy

Communicating Statutory Diversification

Posted by Taylor Rix

Mar 27, 2019 3:15:04 PM

As your ESOP matures, you may feel that you and your employees are starting to better understand your plan provisions and the benefits an ESOP provides. It is important for participants to feel engaged and knowledgeable about their plan. One item that can be difficult to communicate to your employees and comes later in the ESOP’s development is diversification. Your participants will want to know when they can diversify, how much they can diversify, and what their diversification withdrawal options are. 

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Topics: Plan Design, Diversification