A common question regarding ESOPs is if ESOP contributions are tax deductible. Watch our video to learn more.
Transcript
ESOP contributions are fully tax deductible whether they are in the form of stock or cash and they are deductible up to the limits of the Code which are 25% of the ...
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Can Employees Be Given The Election To Reinvest Dividends In ESOP Stock In More Shares In The ESOP?
In this video, Kevin Long discusses the dividend reinvestment election for ESOPs.
Transcript
ESOP participants can certainly be given the opportunity to elect to invest ESOP dividends in employer stock within the plan. However, more often than not the use of dividends ...
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Can An ESOP Invest In Other Than Company Stock?
ESOPs are not required to invest exclusively in company stock. Kevin Long explains.
Transcript
The statute only requires that an ESOP be primarily invested in employer securities and presumably, that means over the life of an ESOP.
The trustee is required by law to also ...
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The SECURE Act: Immediate And Long Term Impacts On Your 401(k) Plan
The SECURE Act, signed into law in December, immediately impacts 401(k) plans with provisions that became effective January 1st, and other provisions going into effect in later years. Here is an overview of the relevant changes.
Changes Effective Now
For 401(k) Safe Harbor Plans that use ...
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A DQ Tale – The Haunting Carryover Of A Disqualifying Defect
A special "ChrERISAmas Story” for the benefits of our readers …
Here’s a tale that we heard from the end of 2018. It illustrates how retirement plan operational defects from years ago can cause plan qualification problems today — even if you never thought you’d be haunted by them. Be careful. ...
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ESOP Reshuffling – Getting Stock To The “Have Nots”
ESOP reshuffling is a tool you can use to manage your ESOP repurchase obligation and get stock to the so-called ESOP "Have Nots."
TRANSCRIPT
Speaking of benefits, this is Kevin Long. In this episode, we're going to talk about tools you can use to manage your ESOP repurchase obligation and ...
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Hardship Distributions And Headaches Down The Road
Note: This article is a revised version of an article published by our law firm years ago. It has been updated to reflect statutory changes under the Bipartisan Budget Act of 2018 (BBA) and proposed hardship distributions regulations published on November 14, 2018.
What do you do when a ...
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ERISA Reporting Requirements
ERISA reporting requirements, as well as other retirement plan reporting requirements, can be daunting for plan sponsors and administrators new to the process. This article is an introduction to those requirements and responsibilities.
Form 5500
ERISA and the Code require each retirement ...
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ESOP Releveraging – Getting Stock To The “Have Nots”
In this podcast we're going to talk about the advantages and considerations to ESOP releveraging, one solution for getting stock to new employees.
TRANSCRIPT
Speaking of benefits, this is Sheryl Bayani Alzona.
For ESOPs that find themselves in what is known as a "have and have-nots" ...
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Confused by the terminology? Check our Glossary of Terms