Why Maintenance?  

Annual administration of any qualified plan is complicated and each succeeding tax act only adds to the complexity. ABRC’s team of legal, actuarial, technical and financial experts possesses the experience necessary to administer your ESOP and ensure government compliance. We only work with Third Party Administrators (TPAs) who have ESOP experience due to the complex rules associated with these plans.

ABRC’s maintenance clients include those for whom we did the original ESOP installation as well as clients of other ESOP providers in need of post-installation maintenance. For a low, flat fee, ABRC will ensure you (or your client) stay compliant with ESOP tax laws and maintain your tax-exempt status year after year.

 ABRC’s ESOP Maintenance Program includes:

ADMINISTRATIVE SERVICES

• Preparation of IRS Forms 5500, 1099 and 945;
• Documentation for ESOP loan repayments;
• Determination of employees’ eligibility to participate in the ESOP;
• Preparation of the allocations of Company Stock to the Participant accounts pursuant to the ESOP formula;
• Calculation of the forfeitures and allocation of same;
• Determination of Vesting;
• Preparation of Participant Statements;
• Preparation of Employer Account Summary;
• Preparation of Distribution Forms and handling of same (as needed).

The administration of the ESOP and any other qualified plans the client may sponsor must be well coordinated. ABRC can handle the administration of all qualified plans for an additional fee.

COMPLIANCE TESTING

• Coverage Testing;
• Top Heavy Analysis;
• Disqualified Persons and Non-allocation Years Testing;
• 409(P) Testing (anti-abuse rules);
• Compensation limits and testing;
• Deductibility limitations;

VALUATION SERVICES

• Perform and prepare the annual appraisal for the ESOP as required by the Internal Revenue Code; and
• Provide summary annual appraisals for the Participants.

LEGAL SERVICES

• Prepare minor ESOP amendments and Summary Material Modifications to the Summary Plan Description;
• Consult with the other advisors on legal issues for the ESOP;
• Provide updated information on legal issues regarding the ESOP; and
• Attend and prepare Minutes for the Annual Administrative Committee Meeting and Trustees’ Meeting.

FINANCIAL SERVICES:

• Assist with cash flow analysis;
• Assist with managing the ESOP debt;
• Monitor the ESOP repurchase liability;
• Provide compensation analysis;
• Provide assistance to the Company’s accountant and/or CFO through accountants familiar with ESOP issues;
• Attend the Annual Board Meeting, Administrative Committee Meeting and Trustees’ Meeting; and
• Facilitate the Annual Meeting with the Participants to review their Annual Participant Statements.

Year-round consulting services are provided as part of our ESOP Maintenance Agreement.

For additional information on our ESOP Maintenance Services, call (480) 556-9928.