Thinking About A Leveraged ESOP Transaction? Part II

With proper planning and execution, a leveraged ESOP can provide benefits to all parties of the transaction, including the company, the owners, the employees and lenders. The Company The most significant benefit for the company is the tax deduction for the contributions to the ESOP, which are essentially returned to the company and available to …

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What is Compensation?

Compensation is key for 401(k)’s and other employee benefit plans. In many plans employees make contributions based on a percentage of their compensation. Other times, employer matching or profit sharing uses compensation as the basis for allocating employer contributions to employees. Compensation is generally defined as gross wages, which are subject to income tax withholding. …

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Streamlining of the Automatic Enrollment Process

Now more than ever it is imperative that the American family starts taking a closer look at their financial future. Now more than ever it is up to the nation to offer easier ways for the American family to start saving. The government is continuously working on finding more efficient ways for small businesses to …

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Step Transaction Doctrine

A recent case in the federal district court highlights the need to have some time elapse between the date of formation and funding of an FLP or FLLC and the date of gifting of interests in the FLP/FLLC. In Heckerman v U.S., the taxpayers (David and Susan Heckerman) took the following steps in gifting of …

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