The ESOP – Employee Stock Ownership Plan – is, slowly, on the rise. These worker-owned businesses are more productive and could benefit the American economy. Shoppers eye goods at the bakery of King Arthur Flour Co. in Norwich, Vt. The employee-owned firm was able to expand from its niche to deliver a broad product line.…
View detalsSmall companies are rushing to reward workers with employee stock ownership plans as low valuations make awarding shares more attractive By Karen E. Klein Bob Moore gathered three employee shifts together last month for pizza parties to celebrate his 81st birthday. But Moore, the founder and president of Bob’s Red Mill Natural Foods in Portland, Ore., also…
View detalsThe NCEO has just completed an analysis of Form 5500 retirement plan filings filed by ESOP companies. The Form 5500 data are prone to considerable reporting and transcription error and should be used with caution, but many of the results described below are in accord with prior research, with our experience, and with best estimates…
View detalsDear Business Owner, Would you be interested in selling part or all of your stock in your company if you could sell it for more than twice what it is currently worth? Case Study I: The Benefits of a Gradual Sale to an ESOP We recently helped one of our clients do just that. Company X…
View detalsDear Reader: As president of Menke & Associates, Inc., I believe there is significant untapped growth potential in most privately held companies. Whether you want to sell some or all of your stock in the company in the next five years or whether you plan to remain active for the long term, Menke & Associates,…
View detalsThe First ESOP (1956) San Francisco lawyer and economist Louis O. Kelso created the first employee stock ownership plan (ESOP) in 1956 as a way to transition ownership of Peninsula Newspapers, Inc. from its two founders (both then in their 80s) to their chosen successors, the managers and employees. Kelso had long believed that the…
View detalsDear Business Owner, This may be the opportune time to take action to avoid the increase in capital gains tax rates that will take effect after 2010. As you may know, the Bush tax rate cuts, including the current 15% capital gains tax rate, are slated to expire at the end of 2010. In addition,…
View detalsMEMORANDUM From: Legal Department Date: January 2008 Subject: Prohibited Allocations in S Corp ESOPs Section 409(p) of the Code, which was enacted as part of the Economic Growth and Tax Relief Reconciliation Act of 2001, sets forth anti-abuse rules for ESOPs that are maintained by S corporations. The following is to summarize the restrictions of Section…
View detalsI. PROVISIONS AFFECTING ESOPS S Corp UBIT Exemption The unrelated business income tax (“UBIT”) exemption that currently applies to S corporation ESOPs, together with the related §409(p) anti-abuse provisions, have been made permanent. These provisions were scheduled to expire at the end of 2010. As the result of PPA, these provisions have been made permanent,…
View detalsI. INCREASES IN CONTRIBUTION, DEDUCTION AND BENEFIT LIMITS Contribution Deduction Limits. The limit on an employer’s deduction for contributions to a non-leveraged ESOP or a profit sharing plan is increased from 15% to 25% of participants’ aggregate compensation. 401(k) deferrals are not counted for purposes of the deduction limits. However, 401(k) deferrals will be included…
View detalsComparison of Old and New Provisions Current Law New Law (EGTRRA) I. Increases in Contribution, Deduction and Benefit Limits Contribution Deduction Limits: An employer’s deduction for contributions (including 401(k) deferral contributions) to a profit sharing or stock bonus plan is limited to 15% of participants’ taxable compensation. The money purchase plan limit is 25%. The 15%…
View detalsMEMORANDUM TO: ALL CLIENTS FROM: MENKE & ASSOCIATES, INC. LEGAL DEPARTMENT DATE: JULY 18, 2001 SUBJECT: NEW “REQUIRED MINIMUM DISTRIBUTION” RULES Depending on the terms of your Plan, participants who are age 70½ or older, are generally required to receive a distribution from the Plan every year. We will refer to this type of a distribution…
View detalsMEMORANDUM TO: ALL CLIENTS FROM: LEGAL DEPARTMENT DATE: JULY 18, 2001 RE: NEW REQUIREMENTS ON FIDELITY BONDING FOR QUALIFIED EMPLOYEE BENEFIT PLANS I. BACKGROUND Current regulations under ERISA require generally that all Employee Benefit Plans engage an Independent Qualified Public Accountant ( IQPA) to perform an annual audit of the Plan, and to include that…
View detalsCapitalism collapsed in the fall of 2008. It’s collapse was also the direct result of a flaw in the system. Capitalism promised universal opportunity and a rising tide for everyone. To achieve this result, capitalism privatized and/or deregulated every possible industry. It glorified greed, extravagant executive compensation, and financial manipulation. Just as in the case…
View detalsEvent Deadline ADP Corrections March 15 (or two and a half months after the close of the Plan Year). IRS Form 1099-R and 1099-Div Must be received by participant no later than January 31 of the year following the payment. Must be filed with IRS by February 28 or, if electronic, March 31. Return of…
View detalsMenke & Associates, Inc. provides all of the legal documentation necessary to design and install an ESOP, including plan documents, corporate resolutions, and employee announcements. In addition, our professional legal staff prepares the IRS application for a Determination Letter and works with the pension trust representatives of the IRS in connection with obtaining IRS approval.…
View detalsAfter you complete this form, we will contact you as quickly as possible. Please be assured that we respect your privacy, and we will not sell your contact information to any other organization. You can e-mail us your questions to moreinfo@menke.com or call us at any of these numbers below or you may submit your…
View detalsAll of our ESOP Advisors were trained as bankers and/or investment bankers before joining the Menke Group, and their average years of service after joining the Menke Group is in excess of 30 years of service. Based on their many years of experience in designing and installing ESOPs, our ESOP Advisors can in most cases…
View detalsMenke & Associates, Inc. is available throughout the year to give live ESOP seminars to CPA firms and their clients. These seminars will be presented live on your premises and can be scheduled for CPE credits ranging from one to three hours. A minimum of 20 attendees is required. No seminar fee will be charged.…
View detalsHow Business Owners, Management, and Employees Can Benefit from ESOPs in 2024! In 2024, many companies will be looking for ways to minimize corporate taxes and maximize cash preservation, while also maintaining competitive employee benefits. Other companies will be looking for ways to create liquidity for shareholders who wish to retire or reduce their ownership…
View detalsMenke & Associates, Inc. will be giving live ESOP seminars in 31 cities throughout the U.S. from October through November of 2010. For Seminar Dates and More Information – Click here to download our flyer in pdf format: To inquire about dates and locations of our upcoming ESOP seminar series: Call Jeanie Kluga at 1-800-347-8357…
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Zero to ESOP in 90 (Minutes)… Get ready to rev your engines for “Zero to ESOP in 90 (Minutes)”—where we’ll take you on a high-speed journey through the twists and turns of Employee Stock Ownership Plans (ESOPs)! Buckle up, because in this 90-minute adrenaline-fueled webinar, we’ll be zooming from A to Z, covering all the…
View detalsArticles for Companies Considering an ESOP Ten Steps to a Successful ESOP Consider an ESOP as a Better Alternative When It Comes Time to Exit Your Business Why Selling To An ESOP Gives Better Financial Returns vs. Other Options ESOP Pros and Cons ESOPS and Employee Productivity ESOPS vs. Profit Sharing Plans ESOPs: Uses, Advantages,…
View detalsZero to ESOP in 90 (Minutes)… Get ready to rev your engines for “Zero to ESOP in 90 (Minutes)”—where we’ll take you on a high-speed journey through the twists and turns of Employee Stock Ownership Plans (ESOPs)! Buckle up, because in this 90-minute adrenaline-fueled webinar, we’ll be zooming from A to Z, covering all the…
View detalsBusiness owners with any one, or all, of the following wishes: Convert part of all of their equity into cash without bringing in another partner or private equity partner or giving up control Add value to their company by increasing company cash flow and working capital Increase employee productivity Most businesses qualifies, i.e., service, retailing,…
View detalsLearn the basics about Employee Stock Ownership Plans: What is an ESOP? ESOP Definition: “ESOP” is an acronym that stands for Employee Stock Ownership Plan. Technically, the Plan is operated or administered pursuant to a tax-exempt Trust, referred to as ESOT, Employee Stock Ownership Trust. Accordingly, the Plan is alternatively referred to as the…
View detalsThe Menke Group provides business valuation appraisals and fairness opinions for privately-held companies. Original ESOP Appraisals Business valuation appraisals are primarily prepared for purposes of establishing the value of stock to be acquired by Employee Stock Ownership Plans. However, the firms engaged by The Menke Group also appraise the value of private companies for purposes…
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