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Terminating an ESOP (de minimis amounts)


Guest Maxwell

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Guest Maxwell

An ESOP has been terminated and payments were made to participants. A portion of the ESOP was held in escrow and now the 2nd and final payments are to be made. about 80 participants will receive less than $1 dollar. Is there a de minimis or small amounts rule which would allow the employer not to distribute these small amounts. It will cost more to process the checks....doubtful, but would appreciate any insight (and citations)...

Thanks...

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