It’s easiest to think of an ESOP loan as essentially a mortgage on the ESOP's shares held in its suspense account. If the stock is sold, the ESOP trustee will pay off the debt and then the net proceeds from the payment of that debt will be the gain ...
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Resources
COBRA: Don’t Pick It Up As Part Of Your Next Deal
"Who has to pay for COBRA coverage?" is a question we often hear from transaction lawyers and their clients in a stock sale or an asset sale. COBRA requires some employers to provide certain participants and their beneficiaries with group health ...
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Employee Benefits Plans In Mergers And Acquisitions
When businesses are bought, sold, merged, or reorganized into or out of existence, qualified retirement plans must be dealt with. This article provides an overview of some of the most common decisions faced by both buyers and sellers, acquirers and ...
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Who Votes the Shares Held in the ESOP?
The Code requires that company stock in the ESOP must have full voting rights. In this video, we discuss who votes the shares held in the ESOP.
ESOP Trustee Duties and Shareholder Rights
Since the ESOP trustee is the corporate ...
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What Classes of Stock Can an ESOP Own?
There are multiple classes of stock that an ESOP can own. In our video, we discuss the different classes of stock.
Classes of Stock
The Internal Revenue Code defines employer securities for privately held companies as including ...
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Coverage Rules For 401(k)’s and Other Qualified Plans – Part 3. Average Benefit Test and the Minimum Participation Rule
This is the third in a series of articles designed to inform you of the significance of the so-called "coverage rules" and the "minimum participation rules" applicable to qualified retirement plans, (here are Part 1 and Part 2 if you missed them). In ...
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Confused by the terminology? Check our Glossary of Terms