Sometimes, an ESOP company finds itself in trouble due to their ESOP or ERISA plan design or follow-through. In some cases, they are quickly and easily fixed. In many cases, it requires an expertise that is not associated with the original plan design advisors. Every 5 years, the law requires all ESOP companies to submit their Trust plan, to ensure it is up to the latest level of law. When the IRS or DOL find mistakes, the company can be fined $13,000 per incident. Simple and inadvertant mistakes that can be cause for fines include: Not updating the plan document properly and timely, missing deadlines, not calculating the proper allocations, not offering stock instead of cash for distributions, improper distributions, not vesting properly, diversification issues, and other items that indicate the company and the ESOP Trust are not following the plan. Our ESOP Advisors have the experience and independence to help your management team repair your plan and avoid the potential fines that come from the IRS or DOL for inadvertent mistakes.