Comprehensive checklist for reviewing esop clients

[Tax Cowboy]

Group

I'm looking for a comprehensive checklist to review an ESOP plan for compliance. Anyone have a checklist they're willing to share and/or a resource that does a pretty good job. Anyone using artificial intelligence/chatgpt /othet apps to review ESOP plans and compliance? 

I have an old checklist and just want to see if there's something I'm missing or should change. 

Thoughts and comments and resources are much appreciated. 

[Belgarath]

You might look into this - they do have a document library including checklists, etc. -  I don't know how much membership is, but I'll bet it is less than you'd charge for one hour of your time. Might be very worthwhile.

https://www.nceo.org/member-resources

[rocknrolls2]

The IRS website at www.irs.gov/ep has some pretty excellent resources as well. You might want to go to a link on amending or updating a plan where you will find a link to an ESOP Listing of Required Modifications (LRMs), which can serve as an excellent start, if you need to draft a plan document.  There are also IRS checksheets used by IRS agents in reviewing plan documents submitted for determination letters which can also be somewhat helpful. There are a couple of caveats you need to bear in mind when examining these documents: (1) the LRMs are a bit rusty and would need to be updated to account for more recent law changes, to the extent that they are mandatory as well as optional changes the client might want to implement, particularly if the IRS has issued any guidance on the issue of some of the optional changes. (2) the LRMs and checksheets do not necessarily consider ERISA and other practical legal language that you might want your client to avail itself of to obtain an advantage and possibly forestall litigation, such as a limitations period and a venue provision for bringing lawsuits following claims denials.

[jsample]

ASPPA has an ESOP publication in conjunction with their ESOP Certificate program.  It is rather detailed, with check lists and annual dates for ESOP compliance.

Side note, I recently asked Chatgpt for the 2022 deferral limits, just for something dumb to ask, and it said it was not updated for the current limits.  2020 were the latest retirement plan limits it could give me.  So I'm not sure how it can be used in the retirement plan compliance world yet.    

[Bob the Swimmer]

Belgarath is absolutely right---my cost this year

for a membership was $275--it is well worth it IMHO if you work with ESOPs.

BOB

[Tax Cowboy]

Thank you for these resources! Much appreciated.