esop rollovers

[Lori H]

generally can a plan rollover annual payments to a term participant over 5 years?

[saabraa]

generally can a plan rollover annual payments to a term participant over 5 years?

I see no issue, presuming the written plan is not contradicted.

I'm more familiar with an ESOP distributing a note that releases shares of employer securities over 5 years. In this situation, the note is fully taxable in the year of distribution (100% of the benefit), unless the NOTE is timely rolled over.

[stephen]

Lori,

I know of no restriction that would keep a plan from paying out of an ESOP over a 5 year period and rolling over each of the payments. It seems that the initial distribution request to roll over the distribution would stay in effect for the full term of the distribution.

I had one privately held employer pay using the note option and they only did it once as the administration of this distribution was a pain to them.

Stephen

[Kirk Maldonado]

Is that what is happening, or did the participant get a distribution of stock and the company bought it back, with payments over five years?