You have choices when it comes to distributing ESOP benefits to participants. Do you distribute shares from the plan that the company immediately redeems from the participant? Or, do you keep the shares in the plan by recycling them among the ...
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Resources
ESOP Companies: Should You Elect S Corporation Status?
Here's the analysis you need to figure out whether electing S corporation status makes sense for your ESOP company. We look at built-in gain, LIFO/FIFO, tax attributes and more. You'll still want to talk to your CPA, but this article will give you ...
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Successor ESOP Trustee Duties And Risks
In a prior article, "Successor Fiduciaries Can Be Personally Liable For Fiduciary Breaches," we raised the question of whether a successor ESOP trustee can be held personally liable for a breach of duty that occurred prior to his or her appointment. ...
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For Internal ESOP Trustees: An Overview of Audits, Lawsuits, And Insurance Issues
You are the ESOP's trustee or administrative committee member and an employee. What exactly are the risks you take as an internal plan fiduciary? What can you do to prepare for a DOL investigation and how do you handle one when it comes? What kinds ...
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Corporate Governance For Private ESOP Companies
Retirement plans are the principal institutional shareholders in the stock markets. These institutional investors believe that sound corporate governance is a key ingredient in successful companies. To maximize their returns, they look for ...
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ESOP Repurchase Liability Planning: Fiduciary Issues
You probably already know that you need to plan for the ESOP repurchase liability – the cost of buying back shares from terminated ESOP participants. But, you may not understand exactly what that liability is and what the ESOP fiduciary's role is in ...
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