Terminating an ESOP (steps, statutes, regs)

[Guest J K Perry]

What steps do I need to take to terminate an ESOP, and what statues and regulations do I need to comply with for the termination? I've been going in circles trying to find out specifics. Thanks!

[QDROphile]

An early part of the process is to hire someone who knows what to do.

[RLL]

J K Perry ---

QDROphile has given you good advice. Terminating an ESOP can be quite tricky, with many traps for the unwary.

You not only have to terminate the ESOP as an employee benefit plan, you likely must set up a fiduciary procedure for determining the manner in which the ESOP will dispose of its employer stock. This is not an exercise to be engaged in by novices.

I can't image what circles you've been going in, but I strongly suggest that you check with the National Center for Employee Ownership at http://www.nceo.org and The ESOP Association at http://www.esopassociation.org for recommendations of lawyers experienced in terminating ESOPs.