Do I need to acquire an independent business appraisal each year?
Yes. In order for the plan to be designed in a manner that the Benefits, Rights, and Features (“BRF) of a 401(k) Plan is made available to any non-highly compensated employees, it is important that each employee has the right to use contributions made to the 401(k) Plan to purchase company stock. In order to provide the employees with this right, the Plan Administrator will require an independent appraisal of the value of the company each year.
Please contact one of our 401(k) Experts at 800-472-0646 for more information.