At some point, your employee-owners will become eligible to request their share of benefits from the ESOP. It's crucial to know the specific regulations governing ESOPs, especially regarding when you must offer a participant the right to request a distribution from your ESOP. In this session, we'll educate employee-owned companies about the rules they need to know concerning distribution and diversification payments to employees. Our discussion will cover the timing, method, and format of distributions, as well as the importance of having a formal distribution policy, including examples of such policies. Additionally, we'll delve into the statutory rules for diversification.
Learning Objectives:
Understand the timing, method, and form requirements for when a past employee is required to be offered a distribution from the ESOP.
Understand the purpose and benefits of establishing a formal distribution policy.
Understand the statutory diversification requirements that all ESOP companies are subject to
Scott Freund, QPA, QKC
Senior Managing Director Blue Ridge ESOP Associates Charlottesville, VA