ESOP Blog

Repurchase obligation is a known issue for most ESOP companies. Simply understanding the potential future liability is only the first part of the challenge. That takes some form of data analysis and examining ESOP mechanics and alternatives. The more ...
[Read more] about Repurchase Obligation Planning Is Not a One-Time Exercise

ESOPs are off the national enforcement priority list, and new guidance points toward a more predictable, misconduct-focused approach. Here's what changed, and what hasn't. If you've ever held back from an ESOP because you'd heard they invite ...
[Read more] about What the DOL’s 2026 Enforcement Shift Means for ESOP Companies

As part of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), very complex S corporation ESOP anti-abuse provisions were enacted into the Internal Revenue Code in the form of new Code section 409(p). The purpose of the ...
[Read more] about 409(p) Rules for S Corporation ESOPs

Employee stock ownership plans (ESOPs) have long been a powerful planning tool. For S corporations, they offer unique tax benefits — and unique pitfalls. If you're a closely held S corporation evaluating a succession plan, shareholder liquidity ...
[Read more] about The Strategic Advantage (and Compliance Risks) of S Corporation ESOPs

You are the CEO of a very successful, 100% ESOP owned S corporation. The company is profitable and running very well, paying no federal or state income taxes. The employees are happy. Out of the blue, you get an offer from a third ...
[Read more] about Selling an ESOP Company

When terminating a qualified retirement plan, there are undeniably many details. Once the termination and wind up of the trust process begins, questions, loose ends and other “speed bumps” can slow down the process considerably. In this article, we ...
[Read more] about The Top 5 “Speed Bumps” When Terminating an ESOP