Aaron Juckett, CPA, CPC, QPA, QKA

Aaron Juckett, CPA, CPC, QPA, QKA

Aaron is President and Founder of ESOP Partners and provides implementation, administration, and consulting services to hundreds of companies. He is a member of The ESOP Association (TEA) and the National Center for Employee Ownership (NCEO).

Recent Posts

The Importance of the Repurchase Obligation in the Life of Your ESOP

An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that can be used as a business transition tool and as an employee ownership vehicle.

 The ESOP repurchase obligation or liability is the company’s obligation to buy back shares from ESOP participants according to the company’s ESOP plan document and ESOP Distribution Policy. The ESOP repurchase obligation helps with planning for cash requirements and how to meet bank (or seller) requirements for leveraged ESOPs.

Watch the video below to understand the importance of working with an Administration Provider that includes a repurchase obligation strategy as part of your ESOP road map and long-range planning.

An ESOP is an Employee Ownership Vehicle

An employee stock ownership plan (ESOP) is an optimal employee ownership vehicle for a company to provide employees with an ownership stake in the company.    

2019 ESOP and Pension Plan Limits

The IRS has announced the 2019 pension plan limits, including the following:

 

An ESOP is a Business Transition Tool

An ESOP is a Business Transition Tool

ESOP stands for Employee Stock Ownership Plan.  An ESOP is a qualified retirement plan that can be used as a business transition tool and as an employee ownership vehicle.

An employee stock ownership plan (ESOP) is a business transition tool that establishes an ESOP trust to be an ongoing perpetual owner of the company.

What is an Employee Stock Ownership Plan (ESOP)?

What is an Employee Stock Ownership Plan (ESOP)?

ESOP stands for Employee Stock Ownership Plan.  An ESOP is a qualified retirement plan that can be used as a business transition tool and as an employee ownership vehicle:

Employee Owned Companies are 235% Better at Job Retention

We have previously discussed how ESOP Companies are Better at Job Retention than their Non-ESOP Counterparts.

2017 ESOP Benefit Payment Government Filings (IRS Forms 1099-R, 1096, 945)

If you paid any ESOP or other qualified retirement plan distribution of $10 or more last year you will have to prepare and file some government forms: Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

2018 ESOP and Pension Plan Limits

The IRS has announced the 2018 pension plan limits, including the following:

  • 401(k) Deferral Limit - $18,500
  • Annual Additions Limit - $55,000
  • Maximum Compensation Limit - $275,000
  • Catch-Up Contribution Limit - $6,000
  • Highly Compensated Employee - $120,000
  • ESOP 5-Year Distribution Threshold - $1,105,000
  • ESOP Additional Year Threshold - $220,000

Building a Sustainable Ownership Culture with ESOP Corporate Governance — Part 2

In part one of this two-part blog series, we dicsussed how shareholders, the Board of Directors, and the ESOP trustee all play a role in developing and maintaining an ownership culture. In this article, we'll take a look at the roles of officers/management, employees, and the Plan Administrator.

Building a Sustainable Ownership Culture with ESOP Corporate Governance — Part 1

Many ESOP companies strive to build and sustain a strong ownership culture that will increase shareholder value. Developing an ownership culture is an ongoing process that evolves over time.  A strong ownership culture can be driven by the CEO, sometimes referred to as the keeper of the culture, and the Board of Directors (“Board”) through corporate governance.  This two-part article series will review the various stakeholders in the corporate governance of an ESOP company, explore their roles in the process, and things stakeholders can implement to strengthen the culture.

Keep Your ESOP On Track and On Time
12 Benefits of Incorporating an ESOP in your Business Exit Strategy

Recent Posts