Once established, there are a number of things you need to do to maintain your ESOP, including:

  • Annual appraisal to update fair market value
  • Trust report for the plan
  • Annual administrative report to determine employee eligibility, allocate released shares according to the plan’s formula, compliance testing, update vesting, employee statements
  • Annual Department of Labor Form 5500 Filing
  • Annual report of independent auditor
  • Plan document must be restated every 5 years and submitted to the IRS for approval
  • Repurchase Liability study

Additional information