In the latest update on the status of the DOL Re-Proposal of the DOL Regulation to Change the Definition of Fiduciary, the House Education and the Workforce committee has requested information from the DOL on the proposals to amend the definition of fiduciary:

Maintaining an ESOP administration timeline is a best practice.  We have shared some key dates in our Upcoming Deadlines and Events page.  Retirement News for Employers – Fall 2011 Edition shares some upcoming deadlines for calendar year plans:

Retirement News for Employers – Fall 2011 Edition highlights one of the frequently asked questions on the IRS Form 8955-SSA FAQ page regarding IRS Form 8955-SSA - Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits:

Retirement News for Employers – Fall 2011 Edition provides some reminders about IRS Form 5558 – Application for Extension of Time To File Certain Employee Plan Returns:

In 2010 the IRS announced an online 401(k) Compliance Check Questionnaire.  It was considered a plan compliance check and failure to complete it would result in further action.  In Retirement News for Employers – Fall 2011 Edition the IRS stated that 95% of those contacted completed the surveys, and that they did indeed initiate examinations on sponsors who didn’t complete the questionnaire: 

I added a link to the powerful video testimonial from Sen. Olympia Snowe [R-ME] to our post on how ESOP Companies are More Productive, Profitable, Sustainable and Create Jobs.

Long-term capital gains rates are currently scheduled to increase from 15% to 20% on January 1, 2013.  In addition, capital gain income will also be subject to an additional 3.8% Medicare tax.  This 59% increase will make an IRC Section 1042 Tax Deferred Sale of Stock to an ESOP more attractive.

Earlier this week we discussed the IRS ESOP Determination Letter Timing Update.  During the October 28, 2011 IRS phone forum on Determination Letter Issues Regarding Employee Stock Ownership Plan, the IRS acknowledged that at one point they had a backlog of 1,500 determination letter requests from two submission cycles.  During this process they found a need for a “substantial amount of interpretive guidance.”  To address this they did they following:

Know the Game Plan: Execute It. Win! shares a copy of ESOP Association President J. Michael Keeling’s remarks from the 2011 Las Vegas Conference and Trade Show, where he emphasized that ESOP companies are “More productive, more profitable, more sustainable, providing locally-controlled jobs.”  He also reviewed the legislative efforts of the last year:

The November 15, 2011 Employee Ownership Update is online and discusses the following: 

On October 28, 2011 the IRS conducted a phone forum on Determination Letter Issues Regarding Employee Stock Ownership Plan.  In the forum they discussed where they are at in the review of determination letter applications for the 5-Year Remedial Amendment Cycle and for IRS Form 5310 plan terminations:

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.

One reason that business owners put off succession planning or even contemplating the thought of selling their business is because they are not ready to retire.  They legitimately worry about the loss of control of handing over the company to a third party.  Selling to an ESOP enables a business owner to sell all or a portion of the company, Providing a Business Owner with Liquidity and Diversification, while at the same time retaining control of the day-to-day operations of the company.  

The November 1, 2011 Employee Ownership Update is online and discusses the following:

In Ownership plan eases retirement insecurities, the President and CEO of Garney Construction writes about the benefits of employee stock ownership plans (ESOPs) and employee ownership, including providing retirement security: