About the Webinar

Most, if not all, ESOP companies also have a 401(k) plan. Employers should view these two programs together – not separately.

Discussion topics include:

  • What should be your company’s targeted annual retirement plan benefit for covered employees? Is it 5% of compensation, 7% of compensation, 10% of compensation? Discuss how to structure the annual ESOP contribution to hit that target, when combined with the company’s (match) contribution to the 401(k) plan. This is especially relevant in a leveraged ESOP when you are deciding what the term of the ESOP Loan (and, therefore, the annual Company contribution for payment of principal and interest) should be.
  • How to use the Company’s ESOP contribution to make your Company’s 401(k) Plan “safe harbor”.
  • How to use the Company’s 401(k) Plan for transfers of diversification-eligible distributions from the ESOP.
  • Understand how the limits on annual deductions and on annual additions to individual accounts work when you have both an ESOP and 401(k) Plan.

Dolores is a managing director at Blue Ridge ESOP Associates. She is a CPA, holds the QKA designation from the American Society of Pension Professionals and Actuaries, and has over 25 years of experience in providing administration and consulting services for ESOPs and 401(k) plans. She is a member of the NCEO, the ESOP Association, and ASPPA. She also serves on the ESOP Association's Advisory Committee on Administration.

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