Blue Ridge ESOP Associates Industry News What is diversification in an ESOP and what are your responsibilities as a Plan Sponsor?

Tom Roback of Blue Ridge ESOP Associates is a member of XPX Maryland
Blue Ridge ESOP Associates 10 months ago

Internal Revenue Code Section 401(a)(28) allows employees to diversify a portion of their stock once they meet certain eligibility requirements. There are specific age and service requirements outlined by the IRS to determine who is a Qualified Participant, however your plan may allow for rules that are less restrictive.

Statutory Requirements:  Click here to continue reading…

Updated: January 4th, 2022

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