ESOP Blog

Here's the analysis you need to figure out whether electing S corporation status makes sense for your ESOP company. We look at built-in gain, LIFO/FIFO, tax attributes and more. You'll still want to talk to your CPA, but this article will give you ...
[Read more] about ESOP Companies: Should You Elect S Corporation Status?

In a prior article, "Successor Fiduciaries Can Be Personally Liable For Fiduciary Breaches," we raised the question of whether a successor ESOP trustee can be held personally liable for a breach of duty that occurred prior to his or her appointment. ...
[Read more] about Successor ESOP Trustee Duties And Risks

You are the ESOP's trustee or administrative committee member and an employee. What exactly are the risks you take as an internal plan fiduciary? What can you do to prepare for a DOL investigation and how do you handle one when it comes? What kinds ...
[Read more] about For Internal ESOP Trustees: An Overview of Audits, Lawsuits, And Insurance Issues

You probably already know that you need to plan for the ESOP repurchase liability – the cost of buying back shares from terminated ESOP participants. But, you may not understand exactly what that liability is and what the ESOP fiduciary's role is in ...
[Read more] about ESOP Repurchase Liability Planning: Fiduciary Issues

At some points in the life of the ESOP loan, you may find it advantageous or necessary to refinance that debt. This article examines the factors fiduciaries should consider, including the benefit of the refinance to the company versus the ...
[Read more] about ESOP Refinancing: Fiduciary Duties

Diversification – that often misunderstood process by which "qualified participants" can elect to have some of the shares in their ESOP account distributed to them in cash or rolled over to other investment options.  Read this article for a ...
[Read more] about ESOP Diversification Myths And Misunderstandings