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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SIMPLE 401(k) Versus a Safe Harbor 401(k): The Pros and Cons for Your Small Business
Choosing the right retirement plan for your small business is crucial for attracting and retaining talent while ensuring compliance with IRS regulations. Two plans that may be options for small businesses are the SIMPLE 401(k) plan and the safe ...
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Confused by the terminology? Check our Glossary of Terms