ESOP Technical Issues Web Seminar – October, 2011

Below you will find the links to watch each of the Technical Issues Webinar Sessions On-Demand: Session 1: Introduction What is an ESOP? History of ESOPs CLICK HERE TO WATCH SESSION 1 Session 2: Retirement Plan Basics Qualified vs. Nonqualified plans Types of Plans CLICK HERE TO WATCH SESSION 2 Session 3: Basic ESOP Transactions Prefund Stock Contributions Leveraged ESOPs Section 1042 Transactions CLICK HERE TO WATCH SESSION 3 Session 4: Plan Operation Features Eligibility Requirements Participation/Benefit Allocations Vesting Distributions CLICK HERE TO WATCH SESSION 4 Session 5: Repurchase Obligation Repurchase Liability Studies Funding the Repurchase Obligation CLICK HERE TO WATCH SESSION 5 Session 6: Administration/Recordkeeping Disclosure Requirements Administration Procedures Administration Pitfalls Lost Participants Lost Beneficiaries CLICK HERE TO WATCH SESSION 6 Session 7: Special Problem Areas of Administration Contributions in Excess of 415 Limits Excess 401(k) Deferrals CLICK HERE TO WATCH SESSION 7 Session 8: Accounting Issues Balance Sheet ... Read More..

ESOP: A New Tax Savings Tool for Owners of S Corporations

“A new dawn greets ESOP companies!” “The Holy Grail of business opportunities beckons: ESOP companies can now operate tax free!” Not since 1984, when the §1042 tax-free rollover was enacted, has the ESOP community bubbled with such enthusiasm. Under the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, (“EGTRRA”), the ESOP’s share of S corporation earnings will not be subject to federal corporate taxation or to taxation as “unrelated business income tax,” unless the ESOP runs afoul of certain “anti-abuse” provisions. Thus, in the case of an S corporation that is 100% owned by its ESOP, the company’s earnings will be entirely tax exempt. Even the least ebullient of practitioners note that fiduciaries of existing ESOPs now confront a new obligation: to assess whether electing S status would benefit the company and the trust beneficiaries. A Bit of History Until the Small Business Job Protection Act ... Read More..