Tag: Income

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 »

Avoid Tax!

Since 1998, ESOPs have been allowed to be stockholders in an S corporation and thereby delay any tax on their share (all when the S corporation is owned 100 percent by its ESOP) of the S corporation’s taxable income until more »

Sale to ESOP vs. Non-ESOP

Selling company stock to a corporation’s employee stock ownership plan produces dramatic tax savings If a corporation’s founding stockholders sell some of the firm’s stock to an ESOP for $7 million, they’ll save a total of $4.2 million in taxes, more »