If your organization has chosen to pursue an ESOP as a succession strategy, you’ll need a partner who understands the ins and outs of ESOP rules and regulations, tax benefits and liquidity options. Whether you’re just considering an ESOP or are managing an existing ESOP, you can rely on Boyum Barenscheer’s team of specialists to guide you through the planning, manage the process and maximize the benefits.
Minnesota/Dakotas Chapter of the ESOP Association
An ESOP is a defined contribution plan that buys the stock of a company the employees work for.
It is a way to defer taxes on the transaction by the seller – think of it as a like kind exchange.
Many pros, one of the largest, is a 100% ESOP that is a S-Corp pays no taxes.
Yes, just like 401(k) distributions, taxable when withdrawn from the plan.
Same as 401(k) rules, but there is a diversification option.
Yes, as long as they are still employees.
Companies with a strong team and entrepreneurial culture that through retirement contributions to the plan can fund a stock redemption.