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Aaron Juckett 
President 
CPA, CPC, QPA, QKA 
ESOP Partners LLC 
Phone: 920-659-6000 
Toll Free: 800-837-3112 
Direct: 920-659-6002 
Fax: 866-337-1095 
AJuckett@ESOPPartners.com
ESOPPartners.com 
OneStopESOPBlog.com 

2013 IRS Pension Plan Limits

401(k) Deferral Limit - $17,500

Annual Additions Limit - $51,000

Maximum Compensation Limit - $255,000

Catch-Up Contribution Limit - $5,500

Highly Compensated Employee - $115,000

ESOP 5-Year Distribution Threshold - $1,035,000

ESOP Additional Year Threshold - $205,000

2012 Pension Plan Limits

1989 - 2012 Plan Limits

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Final Definition of “Readily Tradable on an Established Market”

During a 2010 IRS conference call on diversification, Robert Gertner clarified the Definition of Publicly Traded Securities for ESOP Purposes. IRS Notice 2011-19 - Definition of Readily Tradable On An Established Securities Market, as written by Robert Gertner, has been released and defines "readily tradable on an established securities market" and "readily tradable on an established market, with respect to employer securities", as employer securities that are readily tradable as defined in the Final IRC Section 401(a)(35) Diversification Regulations for certain purposes:


(f) Definitions--

(5) Publicly traded—

11 Employee Development Tools

Most Popular Employee Learning Tools for Small Business shares 11 employee development tools employed by the 2011 Top Small Company Workplace applicants:

9 Flexible Work Practices

Most Popular Flexible Work Practices for Small Business shares 7 flexible work practices employed by the 2011 Top Small Company Workplace applicants:

7 Employee Recognition Practices

Most Popular Employee Recognition Practices for Small Business shares 7 employee recognition practices employed by the 2011 Top Small Company Workplace applicants (in the order of popularity):

Repurchase Obligation Financial Reporting Requirements Unlikely to Change

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

6 Reasons to Apply for an Award

My previous post shares a list of the Company and Employee Awards. It's that time again --- AACE Awards 2011 shares a list of reasons to apply for an award:
  • Organizes Your Thoughts -- Preparing an entry forces you to organize your program for review by the judges.
  • Helps you review -- As you put together your entry, you can get a good overview of your program.
  • Helps you evaluate -- Once your program is organized, you can evaluate it in the light of what the judges will look for, and what they are likely to see from other companies.
  • Generates new ideas -- As you organize your program for entry, new ideas come to you for augmenting and improving it.
  • Shares your ideas -- Your entry will be displayed at the Annual Conference in May so that other ESOP companies can see what has worked for you.
  • Creates an archive -- You'll be able to look back and determine direction, growth and results.

List of Company and Employee Awards

Last year we reviewed some of the available Company and Employee Awards. While it appears that some of the 2011 deadlines have expired, it is never too late to start preparing a submission for the next year's award. Here is an updated list:

If you are aware of any other relevant awards, please let me know and I will add them to the list.

Repurchase Obligation and Corporate Governance Trends

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

  • New Data on ESOP Repurchase Obligations
  • ESOP Company Boards Moving Toward Independent Directors
  • Indian Companies Cutting Back on Broad-Based Equity
  • Ten Days Left to Apply for the Innovations Award

The Update discusses how a new NCEO survey found that the most common repurchase obligation funding methods were pay as you go from company cash or annual cash contributions, that the most common distribution method was a lump sum distribution, that most valuation firms consider the repurchase obligation in the stock price determination, and that most intend the ESOP to be permanent:

Today is the Deadline to Submit Comments on the Proposed DOL Regulations

Today is the deadline to submit comments on the proposed DOL regulations. I hope that every ESOP company and professional will make time to submit comments. Even if you can only find 5-10 minutes, please take the time to write an email to let the DOL know how ESOPs will be negatively impacted by the proposed regulations. You can submit comments by e-mail to e-ORI@dol.gov, subject line: Definition of Fiduciary Proposed Rule, or by using the Federal eRulemaking portal at http://www.regulations.gov.

My Comments to the DOL: 8 Reasons to Remove the Requirement that ESOP Appraisers are Fiduciaries from the Proposed DOL Regulations

From: Aaron Juckett
Sent: Wednesday, February 02, 2011 10:33 AM
To: 'e-ORI@dol.gov'
Subject: Definition of Fiduciary Proposed Rule

ASPPA Comments on Proposed DOL Regulations

The American Society of Pension Professionals and Actuaries (ASPPA) has submitted their comments and recommend that appraisals and fairness opinions be exempt from the proposed DOL regulations "due to the likelihood of added costs to plans and plan participants and the potential chilling effect on the availability of these services." While the organization is providing commentary on the broader range of issues covered in the regulations, they make a great point that impacts the portion of the regulation that applies to ESOP appraisals. The Constitution grants the Legislative Branch, specifically Congress, the sole authority to enact legislation. The comments specifically note that Congress has specifically chosen to NOT include independent appraisers as fiduciaries:

The ESOP Association Comments on Proposed DOL Regulations

The ESOP Association has submitted their comments on the proposed DOL regulations. The comments are organized as follows:

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