Lateral Transfers

It is well known that ESOP is a very versatile planning tool. There is, however, one area of ESOP planning potential that is not widely known and is, accordingly, underutilized. The reference here is to the transferring of funds from other qualified plans (usually profit sharing or 401(k)) laterally into an ESOP where those funds become available to be used by employees to acquire company stock specifically for their own ESOP account. Our firm can help you  explore the potential inherent in this avenue of ESOP utilization and the ramifications, both positive and negative, that need to be understood before one embarks upon it.

We have examples from actual transactions that illustrate what is involved in this ESOP planning alternative.

Contact us for more information at no cost and no risk to you.