In this video, we discuss how ESOP appraisers handle control premiums and minority discounts.
Transcript
In our experience, ESOP appraisers will not use a controlling interest or control premium or a valuation without a minority interest discount in a transaction where the ESOP is ...
[Read more] about How Are Control Premiums And Minority Discounts Handled By ESOP Appraisers?
Does It Make Sense To Combine Our ESOP And 401(k) Plan To Reduce Administrative Expenses?
If you have both an ESOP and 401(k) plan, you may have questions about the option to combine them to reduce administrative expenses. In our video, we discuss some options.
Transcript
Combining your ESOP and your 401(k) plan may or may not reduce your administrative expenses. ...
[Read more] about Does It Make Sense To Combine Our ESOP And 401(k) Plan To Reduce Administrative Expenses?
Do The Code’s Prohibited Transaction Rules Apply To ESOPs?
ESOPs are subject to the prohibited transaction rules under the Code, however, there are important exceptions for ESOPs. Watch the video to learn more.
Transcript
The prohibitive transaction rules that apply to all retirement plans contain two very important exceptions for ...
[Read more] about Do The Code’s Prohibited Transaction Rules Apply To ESOPs?
Are There Tax Advantaged Alternatives To ESOPs, Such As Profit Sharing Plans?
Profit sharing plans are an alternative to ESOPs. In our video, we'll explain some of the differences between ESOPs and profit sharing plans.
Transcript
ESOPs aren't the only form of retirement plan that can buy or sell stock on a pretax basis. Most notably, profit sharing plans that ...
[Read more] about Are There Tax Advantaged Alternatives To ESOPs, Such As Profit Sharing Plans?
Can We Keep An Existing Benefit Plan If An ESOP is Set Up?
A common question is if a company can keep an existing benefit plan if they have an ESOP? Watch our video for the answer.
Transcript
ESOPs are compatible with the entire range of qualified retirement plans. Typically where a company has a 401(k) plan they leave the 401(k) plan in ...
[Read more] about Can We Keep An Existing Benefit Plan If An ESOP is Set Up?
Managing Retirement Plan Risk – What Executives, Directors And Business Owners Should Know
Officers, directors and business owners can have personal liability if the company’s retirement plans aren’t properly managed. Do you know who your plan fiduciaries are? Do you know if you’re one of them?
TRANSCRIPT
Speaking of benefits, this is Jim Paul. Today we're going to be ...
[Read more] about Managing Retirement Plan Risk – What Executives, Directors And Business Owners Should Know
ESOP Tax Deductions Rules
There are tax benefits for ESOPs. In this video, we'll discuss several ESOP tax deductions.
Transcript
The Internal Revenue Code provides several ESOP tax deductions for companies:
First, a company can distribute up to 25% of eligible payroll to an ESOP just like for a profit ...
[Read more] about ESOP Tax Deductions Rules
Can ESOPs Change Their Distribution Rules After It Is Set Up?
Companies should thoughtfully approach any changes to the ESOP's distribution rules after it is set up. Watch this video to learn more about changing distribution rules.
Transcript
As ESOPs mature, as loans are repaid, as shares are allocated, as participants get older and become ...
[Read more] about Can ESOPs Change Their Distribution Rules After It Is Set Up?
Are ESOP Contributions Fully Tax Deductible?
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 ...
[Read more] about Are ESOP Contributions Fully Tax Deductible?
Confused by the terminology? Check our Glossary of Terms