Episode 16 Key Takeaways

[:55] A recap about the intention of this podcast and the last episode about ESOPs.

[4:45] An update about the National Defense Authorization Act.

[6:40] Laura explains how ESOPs work in comparison to a 401(k).

[10:20] Timing of the contribution is important. What communications throughout the year should you expect from your employer to be aware of the proper timing?

[13:20] Valuations are most of the time the drivers of the timelines but sometimes, there are factors with the company that can also come into play.

[14:05] Laura lays out how the timing works with compliance testing, valuation, etc.

[15:30] Within ESOPs, are there any year-end testing they are excluded from?

[17:45] Sometimes, companies make the contribution after the year’s end, which can cause discrepancies. Laura shares how often that is seen in their audits.

[19:00] Are there any obstacles that Laura anticipates for this year with regard to the form 5500 from 2020 being pushed back?

[21:00] Joanne wraps up by summarizing the key takeaways from today’s episode and asks Laura to share her best practices.

Resources:

BDO.com

Beth on LinkedIn

Laura on LinkedIn

Related Insights:

ESOPs: What Does It All Mean?

100% ESOP-Owned Defense Department Government Contractors Eligible for Sole Source Awards on Follow-On Contracts

Quotes:

“The timing of things, especially on distributions, can be a big difference and hard for participants and ESOP companies when they first get started.”

“We usually have a timeline set up so everyone is on the same page with when to expect each piece to take place.”