Blue Ridge Esop Assoc

Good afternoon, [redacted] was a participant in her employer’s Employee Stock Ownership Plan (ESOP)Blue Ridge ESOP Associates serves as the third party administrator (TPA) for the planIn our role as TPA, we maintain and update the ESOP recordsWe also process distributions on behalf of and at the direction of the ESOP, and maintain a call center that participants can call with their questionsAn ESOP is a qualified retirement plan, which is designed to be invested primarily in the form of company stockIt is not a 401(k) PlanThe employer maintains the ESOP as a benefit plan for its participantsMs [redacted] terminated employment on February 2, When a participant terminates employment with the employer in this plan, and he/she maintains a vested account balance in the ESOP, he/she is eligible to request a distribution from that account in the year following his/her termination of employmentOn February 12, 2016, a distribution package was mailed to Ms [redacted] This package contained a letter of instructions along with a distribution form that she could complete to request her distribution from the ESOPThis letter also informed her that she could login to the ESOP website to make her distribution election electronicallyOn February 17, 2016, Ms [redacted] requested her distribution from the ESOP electronically via the ESOP websiteShe elected to have her vested ESOP benefit paid directly to her via a direct deposit to her savings accountOn the distribution form which she signed electronically, she agreed to the statement which states “I have read the Special Tax Notice that accompanies this Distribution Election Form.” The Special Tax Notice was mailed to her with her distribution package, and was also available on the ESOP websiteThe notice explains the tax treatment of any distribution processed from a qualified retirement planOn the first page of the notice, there is a paragraph titled “How can a rollover affect my taxes”The second sentence of this paragraph states “If you are under age ½ and do not do a rollover, you will also have to pay a **% additional income tax on early distributions”As Ms [redacted] is under age [redacted] *, and she did not request a rollover of her distribution from the ESOP, the **% early distribution tax applies to her distributionSince this Special Tax Notice was provided to Ms [redacted] , and since she indicated in her distribution request that she read the Special Tax Notice, we respectfully disagree with her statement that Blue Ridge did not advise her correctly when liquidating her ESOPShe was correctly provided with the Special Tax Notice which explains the tax treatment of her distributionMs [redacted] did contact us in March of 2017, and we have copies of the e-mail correspondence of those discussions as wellBy this time, it had been over a year since she made her distribution request from the ESOP, and she had already been paid her distributionTherefore, it was too late for her to change her election to a rollover to avoid the early withdrawal penaltyWe have on record that she called us in February of to confirm that we received her election, but we have no record of having any discussions regarding the tax treatment of her distributionHad she asked about how her distribution would be taxed, we would have referred her to the Special Tax Notice and advised her to contact her tax adviser Thank you, Ashley W***, CPA, CITP, CGMAManaging DirectorBlue Ridge ESOP Associates [redacted] Road, Suite [redacted] , VA [redacted] -***- [redacted] ext [redacted] direct***-***-*** fax [redacted]

Good afternoon,? [redacted] was a participant in her employer’s Employee Stock Ownership Plan (ESOP)Blue? Ridge ESOP Associates serves as the third party administrator (TPA) for the planIn our role as? TPA, we maintain and update the ESOP recordsWe also process distributions on behalf of and? at the direction of the ESOP, and maintain a call center that participants can call with their? questions.? An ESOP is a qualified retirement plan, which is designed to be invested primarily in the form of? company stockIt is not a 401(k) PlanThe employer maintains the ESOP as a benefit plan for? its participants.? Ms [redacted] terminated employment on February 2, When a participant terminates? employment with the employer in this plan, and he/she maintains a vested account balance in the? ESOP, he/she is eligible to request a distribution from that account in the year following his/her? termination of employmentOn February 12, 2016, a distribution package was mailed to Ms.? [redacted] This package contained a letter of instructions along with a distribution form that she? could complete to request her distribution from the ESOPThis letter also informed her that she? could login to the ESOP website to make her distribution election electronically.? On February 17, 2016, Ms [redacted] requested her distribution from the ESOP electronically via? the ESOP websiteShe elected to have her vested ESOP benefit paid directly to her via a direct? deposit to her savings accountOn the distribution form which she signed electronically, she? agreed to the statement which states “I have read the Special Tax Notice that accompanies this? Distribution Election Form.”? The Special Tax Notice was mailed to her with her distribution package, and was also available? on the ESOP websiteThe notice explains the tax treatment of any distribution processed from a? qualified retirement planOn the first page of the notice, there is a paragraph titled “How can a? rollover affect my taxes”The second sentence of this paragraph states “If you are under age 59? ½ and do not do a rollover, you will also have to pay a **% additional income tax on early? distributions”As Ms [redacted] is under age [redacted] *, and she did not request a rollover of her? distribution from the ESOP, the **% early distribution tax applies to her distribution.? Since this Special Tax Notice was provided to Ms [redacted] , and since she indicated in her? distribution request that she read the Special Tax Notice, we respectfully disagree with her? statement that Blue Ridge did not advise her correctly when liquidating her ESOPShe was? correctly provided with the Special Tax Notice which explains the tax treatment of her? distribution.? Ms [redacted] did contact us in March of 2017, and we have copies of the e-mail correspondence of? those discussions as wellBy this time, it had been over a year since she made her distribution? request from the ESOP, and she had already been paid her distributionTherefore, it was too late? for her to change her election to a rollover to avoid the early withdrawal penaltyWe have on? record that she called us in February of to confirm that we received her election, but we? have no record of having any discussions regarding the tax treatment of her distributionHad? she asked about how her distribution would be taxed, we would have referred her to the Special? Tax Notice and advised her to contact her tax adviser.? ? Thank you,? Ashley W***, CPA, CITP, CGMAManaging DirectorBlue Ridge ESOP Associates [redacted] ? Road, Suite [redacted] , VA [redacted] -***- [redacted] ext [redacted] ? direct***-***-***? fax [redacted]

Revdex.com:
I have reviewed the offer and/or response made by the business in reference to complaint ID ***, and have determined that this proposed action would not resolve my complaint. For your reference, details of the offer I reviewed appear below.We are in receipt of Blue Ridge's response to our complaint - #***It is interesting to see that they make no reference to the conversations I had over phone before Feb 2016, when W*** was sending me letters saying the ESOP would close and I was talking to the reps to understand the optionsAs I had stated before, I had asked the rep if I can take the money out and she had said that one should take it out only in an emergency, nothing in more details of why I should or should not liquidate.I stand by my statement that the rep had not properly advised me of the tax implications nor said I should talk to a tax adviserShe had left the conversation saying forms would come in Feb Once the package came and I signed online, I was trusting her words and so did not double-check.The call records of Blue Ridge should show these conversations - prior to Feb 2016. If Blue Ridge expects people to just read documentation and not listen to their reps, why have the call system at all ? In that case, they should place robots on call to simply direct people to documents, not discuss anything in human conversationI hope they go back to their records, do the due diligence in finding records before Feb and respond.
Regards,
*** ***

Good afternoon,? *** *** was a participant in her employer’s Employee Stock Ownership Plan (ESOP)Blue? Ridge ESOP Associates serves as the third party administrator (TPA) for the planIn our role as? TPA, we maintain and update the ESOP recordsWe also process distributions on
behalf of and? at the direction of the ESOP, and maintain a call center that participants can call with their? questions.? An ESOP is a qualified retirement plan, which is designed to be invested primarily in the form of? company stockIt is not a 401(k) PlanThe employer maintains the ESOP as a benefit plan for? its participants.? Ms*** terminated employment on February 2, When a participant terminates? employment with the employer in this plan, and he/she maintains a vested account balance in the? ESOP, he/she is eligible to request a distribution from that account in the year following his/her? termination of employmentOn February 12, 2016, a distribution package was mailed to Ms.? ***This package contained a letter of instructions along with a distribution form that she? could complete to request her distribution from the ESOPThis letter also informed her that she? could login to the ESOP website to make her distribution election electronically.? On February 17, 2016, Ms*** requested her distribution from the ESOP electronically via? the ESOP websiteShe elected to have her vested ESOP benefit paid directly to her via a direct? deposit to her savings accountOn the distribution form which she signed electronically, she? agreed to the statement which states “I have read the Special Tax Notice that accompanies this? Distribution Election Form.”? The Special Tax Notice was mailed to her with her distribution package, and was also available? on the ESOP websiteThe notice explains the tax treatment of any distribution processed from a? qualified retirement planOn the first page of the notice, there is a paragraph titled “How can a? rollover affect my taxes”The second sentence of this paragraph states “If you are under age 59? ½ and do not do a rollover, you will also have to pay a **% additional income tax on early? distributions”As Ms*** is under age ** *, and she did not request a rollover of her? distribution from the ESOP, the **% early distribution tax applies to her distribution.? Since this Special Tax Notice was provided to Ms***, and since she indicated in her? distribution request that she read the Special Tax Notice, we respectfully disagree with her? statement that Blue Ridge did not advise her correctly when liquidating her ESOPShe was? correctly provided with the Special Tax Notice which explains the tax treatment of her? distribution.? Ms*** did contact us in March of 2017, and we have copies of the e-mail correspondence of? those discussions as wellBy this time, it had been over a year since she made her distribution? request from the ESOP, and she had already been paid her distributionTherefore, it was too late? for her to change her election to a rollover to avoid the early withdrawal penaltyWe have on? record that she called us in February of to confirm that we received her election, but we? have no record of having any discussions regarding the tax treatment of her distributionHad? she asked about how her distribution would be taxed, we would have referred her to the Special? Tax Notice and advised her to contact her tax adviser.? ? Thank you,? Ashley W***, CPA, CITP, CGMAManaging DirectorBlue Ridge ESOP Associates*** ***? Road, Suite ***, VA ***-***-*** ext***? direct***-***-***? fax***
***

Good afternoon, [redacted] was a participant in her employer’s Employee Stock Ownership Plan (ESOP). Blue Ridge ESOP Associates serves as the third party administrator (TPA) for the plan. In our role as TPA, we maintain and update the ESOP records. We also process distributions on...

behalf of and at the direction of the ESOP, and maintain a call center that participants can call with their questions. An ESOP is a qualified retirement plan, which is designed to be invested primarily in the form of company stock. It is not a 401(k) Plan. The employer maintains the ESOP as a benefit plan for its participants. Ms. [redacted] terminated employment on February 2, 2015. When a participant terminates employment with the employer in this plan, and he/she maintains a vested account balance in the ESOP, he/she is eligible to request a distribution from that account in the year following his/her termination of employment. On February 12, 2016, a distribution package was mailed to Ms. [redacted]. This package contained a letter of instructions along with a distribution form that she could complete to request her distribution from the ESOP. This letter also informed her that she could login to the ESOP website to make her distribution election electronically. On February 17, 2016, Ms. [redacted] requested her distribution from the ESOP electronically via the ESOP website. She elected to have her vested ESOP benefit paid directly to her via a direct deposit to her savings account. On the distribution form which she signed electronically, she agreed to the statement which states “I have read the Special Tax Notice that accompanies this Distribution Election Form.” The Special Tax Notice was mailed to her with her distribution package, and was also available on the ESOP website. The notice explains the tax treatment of any distribution processed from a qualified retirement plan. On the first page of the notice, there is a paragraph titled “How can a rollover affect my taxes”. The second sentence of this paragraph states “If you are under age 59 ½ and do not do a rollover, you will also have to pay a **% additional income tax on early distributions”. As Ms. [redacted] is under age [redacted], and she did not request a rollover of her distribution from the ESOP, the **% early distribution tax applies to her distribution. Since this Special Tax Notice was provided to Ms. [redacted], and since she indicated in her distribution request that she read the Special Tax Notice, we respectfully disagree with her statement that Blue Ridge did not advise her correctly when liquidating her ESOP. She was correctly provided with the Special Tax Notice which explains the tax treatment of her distribution. Ms. [redacted] did contact us in March of 2017, and we have copies of the e-mail correspondence of those discussions as well. By this time, it had been over a year since she made her distribution request from the ESOP, and she had already been paid her distribution. Therefore, it was too late for her to change her election to a rollover to avoid the early withdrawal penalty. We have on record that she called us in February of 2016 to confirm that we received her election, but we have no record of having any discussions regarding the tax treatment of her distribution. Had she asked about how her distribution would be taxed, we would have referred her to the Special Tax Notice and advised her to contact her tax adviser.  Thank you, Ashley W[redacted], CPA, CITP, CGMAManaging DirectorBlue Ridge ESOP Associates[redacted] Road, Suite [redacted], VA [redacted] ext. [redacted] direct[redacted] fax[redacted]
[redacted]

Revdex.com:
I have reviewed the offer and/or response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.We are in receipt of Blue Ridge's response to our complaint -  #[redacted]It is interesting to see that they make no reference to the conversations I had over phone before Feb 2016, when W[redacted] was sending me letters saying the ESOP would close and I was talking to the reps to understand the options. As I had stated before, I had asked the rep if I can take the money out and she had said that one should take it out only in an emergency, nothing in more details of why I should or should not liquidate.I stand by my statement that the rep had not properly advised me of the tax implications nor said I should talk to a tax adviser. She had left the conversation saying forms would come in Feb 2016. Once the package came and I signed online, I was trusting her words and so did not double-check.The call records of Blue Ridge should show these conversations - prior to Feb 2016. If Blue Ridge expects people to just read documentation and not listen to their reps, why have the call system at all ? In that case, they should place robots on call to simply direct people to documents, not discuss anything in human conversation. I hope they go back to their records, do the due diligence in finding records before Feb 2016 and respond. 
Regards,
[redacted]