ESOP Administration
We specialize in Employee Stock Ownership Plan (ESOP) administration. An ESOP is a unique type of defined contribution plan.
Just as ESOPs are different, we are not your ordinary TPA firm because we specialize in providing ESOP administration. Since we also provide 401(k) plan administration services, we can serve as TPA for both retirement plans. Alternatively we can serve as your ESOP TPA and will work with your current 401(k) to perform all required combined plan compliance tests.
We provide comprehensive ESOP administrative services. These services include:
- Preparation of Balance Sheet and Statement of Changes in Net Assets
- Determination of participant eligibility and vesting
- Calculation of maximum deductible contribution and leveraged share release
- Allocation of contributions, forfeitures, dividends and other investment earnings
- Preparation of all required compliance tests, including tests on a combined plan basis
- Recycle shares available due to distributions and diversifications
- Rebalance participant accounts, if applicable
- Track cost basis of shares
- Preparation of Form 5500 Annual Return for electronic filing
- Determination of distribution and diversification eligibility and preparation of forms
- Preparation of Forms 1099-R, 1096 and 945 to report distributions and withholding
Providing excellent service to our clients is our number one goal. Our ESOP administrative software system provides us with the necessary controls to ensure accurate administration.
We do not provide legal, appraisal, trustee or investment advisory services for our clients. We will work with your other ESOP professionals to coordinate the timely completion of the administration of your ESOP in a cost-efficient manner.
