ESOPs: Uses, Strategies, Benefits and Pitfalls

Description

Get acquainted with the most popular ESOP scenarios and structures you are likely to encounter when working with private companies. This course will examine implementations for C and S corp clients using real-life case studies; learn how ESOPs are used to achieve various planning objectives; and how to avoid tax and legal risks often perceived as ESOP byproducts. ESOP valuations and GAAP accounting for ESOP loans will be presented by guest experts.

Highlights

• ESOPs: different types; how they differs from other retirement plans; advantages and disadvantages; coordinating with 401(k) and other plans
• S vs. C corp tax strategies
• Valuation
• Liquidity and repurchase liability
• Tax qualification requirements
• Distribution rules
• Shareholder rights
• Employee and beneficiary rights
• Deduction limits and share release formulas
• Suitability analysis, feasibility studies and plan design issues 
• Prohibited transactions
• Anti-abuse testing strategies for S corp ESOPs
• Department of Labor issues and audits

Objectives

• Determine appropriate ESOP transaction for your company or client.
• Identify when an ESOP is appropriate.
• Recognize fiduciary risk management.
• Identify the basics of ESOP feasibility analysis.
• Recognize current and emerging issues.
• Identify tax advantages of ESOPs and non-ESOP alternatives.
• Determine problematic plans and potential pitfalls.

Designed For

CPAs, attorneys, CFOs, controllers and other financial professionals interested in learning more about identifying and consulting on ESOP strategies.