Annual ESOP Administration Services

Clients are able to provide annual employee data and trust information via our secure web page with just the click of a mouse. Once this information is in our hands, the rest is up to us! You can be assured continued plan qualification as we will:

Annual Services Include

  • determine employee eligibility based on your individual Plan specifications;
  • track each employee’s years of service, years of participation and vesting;
  • calculate and allocate benefit and contribution amounts;
  • prepare and supply you with all required participant disclosure materials.
  • Click here for a full list of our Annual ESOP Services

In addition to annual testing, RKS keeps you informed of your requirements with regard to:

  • distribution requirements (i.e., who is eligible for payout and when);
  • options for processing distributions;
  • determination of eligibility for diversification and minimum distribution requirements;
  • any changes in the law that may impact your plan;
  • required notices and/or updates to participants.

Additional ESOP Administration Services

DISTRIBUTION POLICY AND FORMS
RKS will work with you to establish a distribution policy for your ESOP, taking into account available funding, corporate culture and expected share value fluctuation. Once your policy has been established we will design participant letters and forms for your use in processing the distributions. If requested, RKS will provide signature-ready letters to Plan participants on Company letterhead. We also provide mailing service upon request.

RKS will keep you aware of who is eligible (and when) to diversify their stock balances in addition to who is eligible for required minimum distributions at age 70½ and, depending on the terms of your Plan, who may be eligible for in-service distributions. All forms and notices needed to provide participants with information regarding these distribution rights and requirements will be available to you.

PARTICIPANT VOTING RIGHTS
ESOPs may be required to pass through voting rights to their employee owners. RKS can assist you in notifying participants of their rights and provide voting instructions.

END OF YEAR FORMS 1099-R
All distributions, including pass-through dividends, paid from your ESOP must be reported at the end of each calendar year on Form 1099-R. RKS will prepare the required Forms, file them electronically with the IRS and mail participant copies directly.

EMPLOYEE COMMUNICATIONS
RKS will provide live communication services to your plan participants on an as-needed basis. Your custom MyESOPBenefits™ web tool also allows you or RKS to efficiently communicate with your plan participants and provide them with a robust library of ESOP resources.

LOST PARTICIPANT SEARCH
We use several methods to help you find participants you have been unsuccessful in locating. This additional step is critical in keeping your plan compliant.

CONSULTING SERVICES
Consulting is available on special topics, such as compliance and design issues, repurchase liability planning and employee communications.

In summary, we go the extra mile by helping you solve every conceivable need you will have in keeping your plan qualified, your employees happy, and your company successful.

For More Information, Contact R.K. Schaaf Associates, Inc.

Visit our Contact Us page for contact information.