Blue Ridge ESOP Associates Industry News

Anthony Brunsvold

Recent Posts

Review Your Plan’s Language Regarding Diversification

Posted by Anthony Brunsvold

Feb 10, 2017 3:21:38 PM

For ESOPs whose stock isn’t publicly traded, the timing rules for diversification have historically been difficult to meet.   The law says the plan has to issue notices to participants who are eligible for a diversification within 90 days after the close of the plan year.  For those electing a diversification, the plan has until 180 days from the close of the prior plan year to make the payment.  Many ESOPs are not able to get the stock appraisal and annual work done in the 90 or 180 days to comply with the law.  The industry best practice has always been to issue a preliminary notice within the 90 day window informing a diversification eligible participant of their right to diversify.  After the annual work was done, plans would then issue the actual diversification notice and make the payments as soon as feasible thereafter.

Read More

Topics: IRS, Diversification

How to be Creative with Compensation Used to Allocate Contributions

Posted by Anthony Brunsvold

Aug 4, 2015 3:17:16 PM

If you are wondering if your plan can be creative with compensation used to allocate employer contributions, then you need to be aware of the ramifications of such changes.

Read More

Topics: ESOP & 401(k) Plans, ESOP Administration