This notice is to provide plan participants with an update on the AHC ESOP. The transaction to complete the sale of American Health Partners closed on April 6, 2021. In connection with the transaction, work is underway to complete the required administrative work to provide you with your distribution packets. Here are the next steps in the process:
• Distribution packages are being prepared and will be sent to participants. A final account statement must accompany the distribution package, which has caused an unexpected delay. The first distribution package will be sent in June 2021, at which time you will be able to make a one-time election to receive a distribution of up to 75% of your account (excluding any amounts held in escrow under the terms of the transaction).
• The second distribution package will be sent after the liquidation of the ESOP trust, which will occur after the ESOP receives a favorable determination letter from the IRS. Amounts held in escrow will be released at that time. The second distribution package is expected to be sent in the fourth quarter of 2022.
• Participants have the option to receive their distribution in cash or to roll over the distribution to another tax-qualified plan or IRA. They will receive a special tax notice with the distribution package and may want to consult with their tax advisors.
For additional information related to the transaction, the ESOP, and the filing with the Internal Revenue Service, you may want to review the following documents:
- Notice to Interested Parties—This document provides you with information regarding the filing with the Internal Revenue Service.
- Special Tax Notice—This document provides you with information regarding tax issues relating to distributions. You will receive a copy of this notice with your distribution packages.
- AHC Employee Stock Ownership Plan Summary Plan Description—This document summarizes the material terms of the ESOP. There are also three other documents reflecting subsequent amendments to the ESOP: