Comprehensive administration offered for complex plansEmployee Stock Option Plans provide a retirement benefit for employees, as well as tax benefits and a potential financing source for companies. But ESOPs also require extensive oversight. At First American Bank, we can ease your company's burden by handling recordkeeping, compliance testing, reporting and tax form-preparation requirements. Our experienced staff can administer both leveraged and unleveraged plans, and can expand their services to include:
- Calculation and allocation of shares released as payments are made on an ESOP loan
- Determination of disqualified persons/prohibited allocations based on S-Corp ownership under Internal Revenue Code section 409(p)
- Review of transactions to determine cost basis of shares acquired during the year and maintenance of cost basis of shares allocated to participants’ accounts
- Preparation of diversification notices and election forms
Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank Deposit
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However, if you are still working, you are not required to begin RMDs from your employer sponsored plan until April 1 of the year following the year in which you terminate employment. This exception does not apply if you own more than 5% of the employer, nor does it apply to IRAs.
a. $22,500 for 2023;
b. the maximum deferral amount allowed under the terms of the plan; or
c. the amount that allows the plan to meet the required nondiscrimination tests.
In addition, if you attain age 50 or older by December 31, you may defer an additional $7,500 catch up contribution.