KSOP

The KSOP is not a new type of plan.  The concept has been around as long as the 401(k) plan itself.  However, few firms have been successful in developing a system that will handle, administratively, the features of each separate plan when combined into one plan.   Employers who sponsor both a 401(k) Plan and an Employee Stock Ownership Plan must also maintain separate plan documents, separate summary plan descriptions, perform separate plan valuations and provide Participants with two separate statements.  Government reports must be prepared for each plan and often, two different administration firms perform administrative services.   Our KSOP Solution is to offer our clients cost-efficiency and time-efficiency without the compromise of service or expertise.   Feasibility Studies and Analysis:  Our consultants analyze the impact a KSOP will have on your company, your shareholders and your employees. We will meet with your board of directors, attorney and CPA to discuss all possible options. Installation:  The Rogers Companies works closely with an attorney who specializes in KSOPs and ESOPs to ensure that the plan is designed to fit your company.  This includes the customized Plan Document, Trust Document, Summary Plan Description and Corporate Resolutions.  Our services include all documents necessary to prepare the required filing for a Favorable Determination Letter from the Internal Revenue Service. Communication and Education:  We recommend that meetings with employees be done on a regular basis.  We use Power-point presentations to help clarify their new owner-employee status.  The Summary Plan Description is fully explained and we will participate in an open question and answer period.  Special emphasis is given to training supervisors and middle managers to clearly define their roles for possible changes in organizational operations. Existing ESOPs  Existing ESOPs will need to be analyzed and possibly modified before combining the plan with an existing 401(k) or a newly installed 401(k).  Our expertise in this area ensures that the owner-employees will receive the best possible plan. Administration:  Rogers & Associates provides all necessary services to our clients to ensure that the plan is operated in compliance with all current Department of Labor (DOL), Internal Revenue Service (IRS) and other governmental agency’s regulations and codes applicable to the area of qualified retirement plans.    These services include, but are not limited to: Employee data collection Valuation booklet complete with: Plan Specifications Employee Census Trustee’ Report Account Balances Compliance Testing IRS form 5500 with all required reporting schedules and attachments Monitoring plans for compliance with current laws Preparation of a terminated participant’s distribution paperwork IRS forms 945 and 1099-R prepared for each distribution Individual Participant Statements Certified Pension Consultants (CPC), Qualified Pension Administrators (QPA) and Qualified 401(k) Administrators (QKA) whose designations were earned through the American Society of Pension Actuaries and Consultants perform these services.   Liability Study:  A repurchase liability study is used to predict the obligations that the company could incur over different periods of time.  Most employees, on exiting from the company, will expect to have the stock in their account converted to cash.  Through proper planning, the funds will be available for these distributions.