It is a fairly common practice for ESOP plan documents to contain references to ESOP distributions "policies" that are separate from the plan document itself and that are administered, or modified or amended, by plan fiduciaries (committees, trustees or the company). Generally, the practice is ...
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How An ESOP Program Is Put Together – Some Assembly Required
Unlike the typical 401(k) plan, ESOPs aren't an "off-the-shelf" retirement plan.
Each ESOP is individually designed to serve a specific set of purposes. Sellers come to ESOP specialists like us for guidance on how an ESOP can advance their company's business plan and employee benefits structure ...
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ESOPs: Common Misperceptions
There are some common misconceptions about ESOPs that should be addressed and dispelled. Unfortunately, many less than fully informed business owners and advisers hold them as truths. Many business owners mistakenly think:
An ESOP is a giveaway.I will lose control of my company.You must ...
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Employee Aggregation Rules: What You Don’t Know Can Hurt You
First In A Series
It was not a dark and stormy night--at least it didn't start out that way. Instead, it was a sunny and calm afternoon, and a routine year-end review meeting was taking place between the owners of SMALLCO (a manufacturing business), their accountant and their retirement plan ...
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Employee Aggregation Rules: Controlled Groups
Second In A Series
In our last episode we left our heroes spending a dark and stormy night arguing about who screwed up and failed to recognize that SMALLCO and SMALL Vineyards had to be considered one employer for employee benefit plan purposes.
SMALLCO and SMALL Vineyards were ...
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Employee Aggregation Rules: Affiliated Service Groups
Third In A Series
In the first two installments of this series on the aggregation of employers and employees, we spent a dark and stormy night with the owners of SMALLCO and SMALL Vineyards and their advisors learning about the controlled group rules and why the employees of the two businesses ...
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Employee Aggregation Rules: Leased Employees
Fourth And Final (Whew!!) Of A Series
In our first three action-packed episodes on the aggregation of employers and employees, we spent a dark and stormy night with the owners of SMALLCO and SMALL Vineyards and their advisors learning about the steamy world of controlled group rules. We ...
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Pension Actuaries: Do You Need One For Your Plan?
The role of the pension actuary on the retirement plan team …
Actuaries are well trained in determining pension liabilities and costs and can often quote the pension sections of the Internal Revenue Code verbatim. But do you need one? Do you have one? Whether you have one is often determined by ...
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The Employee Plans Compliance Resolution System (EPCRS): When Haste DOESN’T Make Waste
I can still hear my mother saying it, "Haste makes waste, Marcel." And it is true in many situations – acting too quickly can cause mistakes that waste time and money. But it isn't always the case with qualified plan failures. In most cases, timely correction of a failure will cost you less money ...
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Confused by the terminology? Check our Glossary of Terms