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Home > Resources > ESOP > ESOP Share Distributions: “Recycle” Or Redeem?

ESOP Share Distributions: “Recycle” Or Redeem?

February 8, 2017 by Kevin Long

You have choices when it comes to distributing ESOP benefits to participants. Do you distribute shares from the plan that the company immediately redeems from the participant? Or, do you keep the shares in the plan by recycling them among the remaining accounts and distribute cash? This article gives you the tools to make that decision. Learn how each distribution method impacts your company’s tax planning and share value as well as the impact on the ESOP participants.   You’ll even learn how you can combine recycling and redemption with other tools to target benefits to senior employees or newer employees.

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About Kevin Long

Kevin has personally worked on every one of our 400 ESOP cases. Designing new ESOPs or assuring sustainability for existing ESOPs, he guides companies to achieve goals with their benefit plans in a tax-advantaged manner while incentivizing their employees to greater productivity.
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EDITOR’S NOTE: We did the best we could to make sure the information and advice in this article were current as of the date of posting to the web site. Because the laws and the government’s rules are changing all the time, you should check with us if you are unsure whether this material is still current. Of course, none of our articles are meant to serve as specific legal advice to you. If you would like that, please call us at (916) 357-5660.

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