Jump to content

ESOP Basics and Restatement cycle

Recommended Posts

Please go gentle on me, I'm new to all of this.  


Two questions I'm trying to sort out are:


1. How often do ESOPs need to be restated (is this the correct term?) to the IRS?  I read every 5 years and now maybe every 6 if using this elusive prototype document process..

    1b. If a firm has not restated/resubmitted well beyond the allowed time is there a different process for restating or submitting or should that firm just hurry up and send it in to the IRS.

2. There is another post on this, so I risk redundancy, but after reading about how the IRS is now allowing ESOPs to follow the prototype, pre-approved process I'm having difficulty finding resources on this..  Anyone on here knowledge and generous to share more on this?


Thank you


Link to comment
Share on other sites

I believe I found my answers digging through prior threads. 

The 5 year cycle is no longer relevant for ESOPs and all prior determination letters are still valid (assuming no significant changes to plans), even if expired. (This was mentioned by EBECatty) 

  • Rev. Proc. 2016-37, Section 13, 01 Rev. Proc. 2016-6 provides that, effective as of January 4, 2016, determination letters issued to individually designed plans will no longer contain an expiration date.
  • 02 Under this revenue procedure, expiration dates included in determination letters issued prior to January 4, 2016, are no longer operative.
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...