This episode we get to review what is important about third party administration of an ESOP plan. Scott Freund is an absolute expert at the nuances of how benefit testing as it incorporates IRS limitations related to ESOP Plan design. For instance, IRS code section 404 that generally allows for a contribution to the ESOP plan up to 25 percent of the payroll and IRS code section 409(p) related to S-corporation ESOPs to test related to disqualified persons. This is an essential step to understand for planning your ESOP and for staying on top of an existing ESOP plan.
Journey to an ESOP & Beyond