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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10138
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I quit a company and we had a esop program and say they can

Customer Question

I quit a company and we had a esop program and say they can pay me off in 5 years well I was wondering if there is any way I could get it now
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

Hi. My name's Lane. I can help here.

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Legally they can BUT, if the plan document doesn;t allow it (and you have a legal right to see the plan document) then the plan could become out of compliance. (both IRS and DOL)

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Distributions may be made all at once (a "lump sum") or in substantially equal payments that are made no less frequently over annually over a period of not more than five years. (This means there can be six annual payments, counting the first year.) The five-year period can be extended for very large balances (an indexed amount currently over $1 million).

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Ask them for a copy of the "plan document."

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There are three regulators for a qualified plan (including ESOPs) (1) Tax law (IRS enforced) (2) ERISA (DOL enforced, and (3) the plan's "plan document."

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If rhe plan document allows it, you can take in a lump sum.

Expert:  Lane replied 1 month ago.

Please let me know if you have any questions at all, before you rate me

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If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit").

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Thanks!

Lane


I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.