Tag: esop distribution

ESOP – The “Down-Side”

Special Limitations and Requirements–ESOPs are subject to special limitations and requirements that may appear to present unsolvable problems, but in actuality, rarely do. The Right to Demand Distribution of Company Stock—First, ERISA provides that ESOP participants have the right to more »

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 »

ESOP – A Superb Planning Device

Introduction Employee Stock Ownership Plans (ESOPs) present the best planning opportunity for owners and managers of closely-held businesses available within our whole tax system.  Congress has long favored employee ownership and ESOP is the means it has chosen to induce more »