Tag: Distribution

ESOP Participant Distributions

Focusing now on ESOP distributions to existing participants, the law extends considerable flexibility.  When a participant leaves because of retirement, death or disability, benefits must commence in the year following the triggering event and continue in equal increments for up more »

ESOP Participant Information

Participant Discretionary Diversification In order to allow employees to “hedge their bet” and decrease their exposure to a drop in the value of their employer’s stock as they near retirement age, Congress amended the law to provide that a participant more »

S-ESOP And Valuation

Since S-ESOPs add a new dimension to their sponsor, it has been argued that the potential to either (or both) grow tax-free or pay tax-free distributions to its S-ESOP stockholder could result in a higher appraised value. This matter is more »

Distribution of ESOP Benefits

1. Employee Right to Require Distributions of Stock. Participants have the right to require that the ESOP distribute their entitlement in the form of employer stock, subject to two exceptions: a. Where the employer’s charter or bylaws restrict the ownership more »