After years of historically low interest rates (which results in larger lump sum pension amounts), there have been significant interest rate increases during 2022. Prospects for 2023 are for more of the same. While many...more
Employee Stock Ownership Plans are a unique form of retirement plan designed to invest primarily in employer securities. Under most privately held ESOP companies, employees receive a distribution of company shares upon...more
In light of the economic disruption created by the COVID-19 pandemic, employers are exploring all available avenues to cut costs. Many are wondering about the ability of employers to defer or eliminate contributions to 401(k)...more
After a long period of relative stability enjoyed by sponsors of qualified retirement plans, several significant modifications have been made by the Bipartisan Budget Act of 2018 (Act), following closely on the heels of...more
10/31/2018
/ 401k ,
Breach of Duty ,
Defined Benefit Plans ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
Fiduciary Duty ,
Individual Retirement Account (IRA) ,
IRS ,
Pensions ,
Retirement Plan
Undoubtedly, the sponsors of mature ESOPs face numerous challenges that only become apparent after the ESOP has been implemented and has been in operation several years. These challenges include implementation of a seamless...more
One challenge faced by ESOP trustees and administrators in recent years are challenges from the plaintiff’s bar in the form of class action lawsuits frequently filed by attorneys representing purported classes of participants...more
While many in the employee benefits community have sounded the death knell for defined benefit plans in recent years, there is some mounting evidence that their prediction has been premature. While corporate America has...more
The 2017 Tax Cut and Jobs Act,signed into law on December 22, 2017, added Internal Revenue Code section 4960, which imposes a 21% excise tax on annual compensation in excess of $1 million paid by an “applicable tax-exempt...more
One of the most commonly used techniques to provide liquidity for closely held businesses is to insure a buy-sell arrangement on behalf of its owners. Buy-sell arrangements typically come in two varieties: redemption and...more
There have been numerous articles published about the advantages of Roth IRAs and Roth 401(k) accounts. While no tax deduction is available for contributions to Roths, in general, distributions of both principal and earnings...more
In recent years, many sponsors and trustees had to defend investigations from the U.S. Department of Labor (DOL) in connection with transactions in which company shares were sold to an Employee Stock Ownership Plan (ESOP). In...more