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 common stock if the common stock has the highest ...
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What Can an ESOP Company Do Once the ESOP Owns All the Stock?
Once the ESOP owns all of the company stock, it faces the challenge of how to get stock into the hands of new employees. Watch our video to learn more.
Approaches to Free Up Shares
The simplest and most straightforward approach is for the corporation to simply issue and contribute ...
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What Are the Tax Risks of an ESOP Malfunction?
ESOPs and ESOP transactions are highly complex. They involve several areas of the Internal Revenue Code including corporate taxation, qualified plan, design and administration, and mechanical tests. It is important to understand how ESOP transactions can potentially trigger excise taxes under the ...
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Partial Withdrawal Liability – Keep Making Pension Contributions, Get Hit with a Bill Anyway
Are you considering laying off employees? Does your company contribute to a multi-employer pension fund (e.g. a union pension fund)? If so, you need to know about the partial withdrawal liability rules.
You may already know that if you stop contributing to a union pension fund, ...
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PPP FAQs: Will Retirement Plan Contributions Be Forgiven Under the Paycheck Protection Program?
Many have questioned how much of retirement plan contributions paid with PPP loans can be forgiven. On August 4, 2020, the Small Business Administration resolved one big question when it issued the latest FAQs on PPP Loan Forgiveness.
This is timely since the deadline for making 2019 ...
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What Are the Tax Benefits of a Non-leveraged ESOP?
A non-leveraged ESOP is a type of ESOP that does not involve borrowed funds to acquire the sponsoring employer’s stock. It is funded by contributions of cash or stock directly from the employer sponsor. In this video, we discuss the tax benefits of non-leveraged ESOPs.
Tax ...
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ESOP Plan Design And Document Drafting
Updated August 2020
If we're drafting your ESOP plan document, then you'll become familiar with our ESOP Plan Design Checklist. That checklist is what jump-starts our conversation with you about how your ESOP should be designed. This article tells you why we're asking the questions we ask on the ...
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What Are the Fiduciary Risks of Serving on the Administrative Committee?
An ESOP administrative committee focuses on the operation of the plan and on the management of the plan assets. Watch our video to learn about the fiduciary risks of serving on the administrative committee.
Administrative Committee Members
The fiduciary risks of administrative ...
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What Are the Fiduciary Risks of an ESOP Malfunction?
While there are a number of benefits associated with ESOPs, they can present problems and complications. Understanding the fiduciary risks of an ESOP malfunction helps you avoid them. Learn more in our video.
Fiduciary Risks
There are two types of fiduciary required under ...
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Confused by the terminology? Check our Glossary of Terms