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Casey Gustafson

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ESOP Valuation Guidelines

Posted by Casey Gustafson

Aug 25, 2023 8:52:05 AM

The fair market value of employer stock is determined by an independent valuation firm; however, the fiduciary is ultimately responsible for making sure the stock has been properly valued. Over or under valued stock can lead to deduction issues, a prohibited transaction, or other violations. Fiduciaries must act prudently and in good faith with the fair market value calculated with adequate consideration to prevent such issues.

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Topics: IRS, Year-End Valuation

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