A qualified plan such as a 401(k) may – but isn't required to – allow for loans to plan participants. In this podcast, Marcel Weiland discusses the IRS rules governing the loan caps and repayment schedule, and the potential consequences of a compliance failure to the plan sponsor and ...
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ESOP Reverse Allocations
This article describes the use of reverse allocations in Employee Stock Ownership Plan (ESOP) companies to provide a meaningful number of shares for newer and younger employees and to help ensure the ESOP's sustainability.
ESOPs reward longevity and provide a meaningful stake in a company's ...
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An Efficient Employee Benefits Due Diligence Approach
Employee benefits due diligence during a transaction can protect buyers from unpleasant surprises post-closing and give sellers a negotiating edge by ensuring that their benefits plans have a clean bill of health. It provides confidence to both sides that the benefits part of the deal is taken care ...
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2018 Disability Claims Regulations Apply to More Than Just Disability Plans. Do They Apply to Your Plans?
In April 2018, new disability benefit claims regulations from the Department of Labor (DOL) went into effect.
The regulations apply to more than just ERISA plans that provide disability benefits in a traditional sense (e.g., a long-term disability plan). They also apply to any plan that ...
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ESOP Planning: How Many Shares Should the Owner Sell
Figuring out how many shares to sell to the ESOP is a fundamental decision part of the planning process. The article looks at some of the factors in play.
How Many Shares to Sell? What are Your Goals?
Owners are often surprised that the decision-making process involved in determining how many ...
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ESOPs: The Three Types
This article will acquaint you with the utility of the ESOP as both a technique of corporate finance and an employee benefit plan. It is important to note, however, that there are other employee benefit plans that can be used to invest in stock of the employer sponsor. There are profit sharing ...
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Five Ways ESOPs Fit Your Succession Plan
An ESOP can be a powerful succession planning tool for your business. But relatively few advisors in the marketplace know enough about ESOPs to give you the information you need. We'll give you a head start. Here are five ways an ESOP can fit, or even drive, your succession ...
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Plan Loan Failure Correction – Good News From The IRS
In today's episode, we talk about new opportunities from the IRS to self-correct plan participant loan errors, which previously were the fourth most common error found in the IRS's more complex Voluntary Correction Program.
Transcript
Speaking of Benefits, this is Jim Paul.
In ...
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ESOP Distributions: Problems to Avoid
Any ESOP attorney or consultant can tell you that ESOP distributions can be the most complex and challenging area of ESOP design and administration. As discussed in detail in our articles Designing And Drafting ESOPs[1], and Avoiding ERISA Liability Issues In ESOP Repurchase Liability Planning[2], ...
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Confused by the terminology? Check our Glossary of Terms