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Aaron Juckett 
ESOP Partners LLC 
Phone: 920-659-6000 
Toll Free: 800-837-3112 
Direct: 920-659-6002 
Fax: 866-337-1095 

2015 IRS Pension Plan Limits

401(k) Deferral Limit - $18,000

Annual Additions Limit - $53,000

Maximum Compensation Limit - $265,000

Catch-Up Contribution Limit - $6,000

Highly Compensated Employee - $120,000

ESOP 5-Year Distribution Threshold - $1,070,000

ESOP Additional Year Threshold - $210,000

2015 Pension Plan Limits

2014 Pension Plan Limits

1989 - 2013 Plan Limits

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2014 ESOP Benefit Payment Government Filings (IRS Forms 1099-R, 1096, 945)

1040 ESOP

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 information returns: Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

2015 ESOP Safe Harbor Contribution

ESOP money

Many ESOP companies either make or have considered making a safe harbor matching or discretionary contribution in their ESOP or 401(k) plan.  As the year-end approaches, now is a good time to revisit the safe harbor contribution rules.

ESOP Company Board of Directors Responsibilities

ESOP business succession

At the time a business owner or company begins the process of exploring an employee stock ownership plan (ESOP) as a component of their Business Succession Plan, many have never established a functioning Board of Directors.  More often than not, the shareholder serves as the only member of the Board, while also serving as the President of the company.  Of those that do have a Board, many operate the Board as nothing more than an extension of the senior management team to make short-term operational decisions rather than long-term, strategically focused Corporate Governance

2015 ESOP and Pension Plan Limits

ESOP rules and regulations

The IRS has announced the 2015 pension plan limits, including the following:

How an ESOP Business Succession Plan Pays For Itself

esop business succession planning

We have been exploring how an ESOP can be a key component of your Business Succession Plan.  Selling to an ESOP helps the business owner Maximize the After-Tax Proceeds, Providing the Greatest After-Tax Return while at the same time Increasing the Cash Flow of the Company by Eliminating the Company’s Ongoing Income Tax Obligation.  In other words, the tax savings for Incorporating an ESOP in your Business Succession Plan will provide the funding for the sale of the company to the ESOP.

Ideas for ESOP Employee Ownership Month (EOM) 2014

ESOP idea

Last week was the start of ESOP Employee Ownership Month (EOM) 2014.  In my August 2013 ESOP Report article "It’s Not (Just) What You Say, It’s How Often You Say It," I discussed how EOM can also be used to promote your ESOP internally.  Daily or weekly celebrations and events are commonplace, and provide multiple opportunities to keep the ESOP fresh in the minds of your employee owners.

October is 2014 ESOP Employee Ownership Month

Employee Ownership Month 2014

ESOP Association President, J. Michael Keeling announced the start of Employee Ownership Month 2014:

Business Succession Planning: Increase Company Cash Flow by Eliminating Taxes

esop benefits

We have been discussing how the recent ESOP Economic Performance Survey (EPS) revealed that 93% of ESOP companies found that establishing an ESOP was “a good business decision that has helped the company.”  While there are many reasons for this, one of the significant reasons is because S Corporation ESOP companies are not subject to income taxation (federal and most states), increasing cash flow and providing the company with a competitive advantage.  Yes, you read that right, S CORPORATION ESOP COMPANIES ARE NOT SUBJECT TO INCOME TAXATION!

Business Succession Planning: How to Increase After-Tax Proceeds Using an ESOP

ESOP profit

The results of the ESOP Economic Performance Survey (EPS) were released last week – 93% of ESOP companies found that establishing an ESOP was “a good business decision that has helped the company.”  If a business owner is interested in preserving the long-term success of the company and its employees after he/she leaves or sells the company, this is a pretty strong indicator that an Employee Stock Ownership Plan (ESOP) would be an ideal way to accomplish that objective.

23rd Annual ESOP Economic Performance Survey (EPS)

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