Even if you aren’t currently making distributions to ESOP participants when they leave employment in company stock, calculating the cost basis of the shares each year could save you time and money and minimize the potential for costly tax reporting errors.
Would you like to save time and money and avoid costly mistakes in the administration of your ESOP? One way you may accomplish this is to work closely with your Client Service Associate (CSA) throughout the annual administration process for your ESOP.
It happens to all of us, we make mistakes. Often times the consequences of the mistake are less severe if we are proactive in correcting it. This is true when a mistake is made in a qualified retirement plan.