Historically, ESOPs were custom written documents produced by lawyers, which had to be submitted to the Internal Revenue Service for approval. These documents could be costly to amend and maintain. With the arrival this summer of IRS pre-approved “checklist driven” ESOP documents (similar to 401(k) ...
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Partial Withdrawal Liability – Keep Making Pension Contributions, Get Hit with a Bill Anyway
Are you considering laying off employees? Does your company contribute to a multi-employer pension fund (e.g. a union pension fund)? If so, you need to know about the partial withdrawal liability rules.
You may already know that if you stop contributing to a union pension fund, ...
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PPP FAQs: Will Retirement Plan Contributions Be Forgiven Under the Paycheck Protection Program?
Many have questioned how much of retirement plan contributions paid with PPP loans can be forgiven. On August 4, 2020, the Small Business Administration resolved one big question when it issued the latest FAQs on PPP Loan Forgiveness.
This is timely since the deadline for making 2019 ...
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What Are the Tax Benefits of a Non-leveraged ESOP?
A non-leveraged ESOP is a type of ESOP that does not involve borrowed funds to acquire the sponsoring employer’s stock. It is funded by contributions of cash or stock directly from the employer sponsor. In this video, we discuss the tax benefits of non-leveraged ESOPs.
Tax ...
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ESOP Plan Design And Document Drafting
Updated August 2020
If we're drafting your ESOP plan document, then you'll become familiar with our ESOP Plan Design Checklist. That checklist is what jump-starts our conversation with you about how your ESOP should be designed. This article tells you why we're asking the questions we ask on the ...
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What Are the Fiduciary Risks of Serving on the Administrative Committee?
An ESOP administrative committee focuses on the operation of the plan and on the management of the plan assets. Watch our video to learn about the fiduciary risks of serving on the administrative committee.
Administrative Committee Members
The fiduciary risks of administrative ...
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What Are the Fiduciary Risks of an ESOP Malfunction?
While there are a number of benefits associated with ESOPs, they can present problems and complications. Understanding the fiduciary risks of an ESOP malfunction helps you avoid them. Learn more in our video.
Fiduciary Risks
There are two types of fiduciary required under ...
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Must an ESOP Company Respond to an Offer to Purchase?
An ESOP company needs to understand what it should do if an offer to purchase is made. Watch our video to learn more about having the proper procedures in place.
Transcript
This is a very dynamic and evolving area of the law involving ESOPs. Suffice to say that a board of ...
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Pooled Employer Plans – Coming Soon
Last December before panic set in, Congress passed the SECURE Act. Beginning in 2021, banks, insurance companies, and other financial institutions may begin offering Pooled Employer Plans (PEPs). A PEP is a 401(k) or profit-sharing plan with multiple, unrelated employers. Assets are ...
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Confused by the terminology? Check our Glossary of Terms