Maintaining Your ESOP

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