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
The staff know my wife and me by name and we're always treated courteously and professionally. I see no need to bank anywhere else.Share Your Story
First American has been our bank going on almost 20 years. Never an issue- always friendly no matter which location. Great customer service!Share Your Story
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.
Special Note: For 2020 the CARES Act temporarily suspended the RMD requirements from IRAs and qualified retirement plans provided the employer sponsoring the plan adopts the CARES Act provisions. Check with the sponsor of your retirement plan to confirm if you must take an RMD for 2020.
a. $19,500 for 2021;
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 $6,500 catch up contribution.