Aside from cost issues, what can make ESOPs not feasible? Several factors need to be considered: Is payroll adequate? As explained in the section “ESOP Participation, Allocation, and Vesting Rules and Practices,” there are limits to the dollar amounts that can be contributed to an ESOP each year (generally 25% of pay). If this amount…Read More
EXTERNAL TRUSTEES ARE EXPERTS. External trustees often have the experience and knowledge of all the issues that arise in connection with an ESOP. The Aegis team has over 65 years of ERISA experience making us uniquely qualified to fulfill the fiduciary obligations of trustee. Because Aegis’s only business is providing trustee services we have the…Read More
ESOPs Provide a Variety of Significant Tax Benefits for Companies and Their Owners. ESOP Rules Are Designed to Assure the Plans Benefit Employees Fairly and Broadly. Employee ownership can be accomplished in a variety of ways. Employees can buy stock directly, be given it as a bonus, receive stock options, or obtain stock through a…Read More
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