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Can SES do more for you?

As many of you are wrapping up another year’s ESOP administration (or soon to be), you may be breathing a sigh of relief that you made it through another administration cycle. Because ESOPs are complicated and unique, they can be particularly challenging to manage. While you have outsourced the recordkeeping to SES, there are other ways we can partner with you to ease your administrative responsibilities. Regardless of whether you are a new ESOP, or have been around awhile, consider the ... Read more

How to handle rehired employees

When a Plan participant who had previously terminated employment is rehired, questions inevitably arise. When is an employee eligible to actively participate again? How is their vesting affected? What if they were receiving installment distributions? While the Plan document is the ultimate source for answering these questions, this article will provide an overview of Federal regulations governing what a Plan is allowed to do. Eligibility When an employee is re-employed, the Plan document must be reviewed to determine whether the document has a ... Read more

NCC Automated Systems Partners With SES Advisors To Complete Employee Stock Ownership Plan (ESOP)

NCC Automated Systems, an integrator and manufacturer in the food packaging, and ophthalmic automation industries, announced today that the company has formed an ESOP (Employee Stock Ownership Plan). In the transaction, ownership sold a significant interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the Company without any personal cash investment. Read the full article here. Read more

ESOP Diversification: What is it and what is required?

What is Diversification? Section 401(a)(28)(B) of the Internal Revenue Code creates a requirement for ESOPs holding employer securities to allow for the diversification of a participant’s stock account once they become a Qualified Participant. Generally, a Qualified Participant is defined as a participant who has reached age 55 and completed 10 years of participation in the Plan. Satisfying these requirements triggers the beginning of the Qualified Election Period, which is generally defined as the 6-year period beginning with the first day of ... Read more

What Do You Mean By “Year”?

When someone says “Happy New Year” or “have a good year”, most of us do not stop to think what that means. We automatically think 365 days, or the year 2017. But what does “year” mean in the ESOP world? As with most things involving an ESOP, one word can have many diverse meanings. Here is a summary of the most common uses of the word “year” when dealing with ESOP plan administration: • Plan Year: This is defined in the ESOP ... Read more

ESOP-focused law firm Steiker, Greenapple & Fusco P.C. announces name change, welcomes Paul S. Fusco as a named partner

The firm formerly known as Steiker, Greenapple & Croscut P.C. is pleased to announce that Paul S. Fusco has become a named partner of the firm. As such, the firm has changed its name to Steiker, Greenapple & Fusco P.C., effective immediately. "We have been thrilled to have Paul as a partner and greatly respect his work, his commitment to employee ownership, his commitment to his clients, his commitment to his partners and his commitment to the ESOP community," said James G. ... Read more

Four attorneys of Steiker, Greenapple & Fusco, P.C. to speak on employee stock ownership plans (ESOPs) this fall

Four attorneys with Steiker, Greenapple & Fusco, P.C., a boutique law firm focusing specifically on employee stock ownership plans (ESOPs) will be offering their expertise on (ESOPs) at different times and locations during October and November: Steiker, Greenapple & Fusco P.C. (SG&F), will be offering their experience and knowledge on ESOPs at three conferences covering the following topics: Internal trustee review and annual valuation reports at The ESOP Association's New England Chapter Annual Fall Conference in South Portland, Maine on Oct. 6 and 7; What paralegals ... Read more

Boomers opt for ESOPs as a succession planning tool

Monaco Jr., in his mid-60s, knew he had several good choices to cash out of his investment in Unicast. He decided to sell to the folks he knew best, his employees. To accomplish this, he used an employee stock ownership plan, or ESOP. ESOPs are a way to sell a company internally to employees. ESOPs enjoy several valuable tax benefits, including the possibility for a selling shareholder to defer capital gains tax on sale of shares to an ESOP and the ability ... Read more

Vespoli Puts Workers At The Helm

In two months, Amanda Ward will have worked to sell Vespoli USA racing rowboats for a full year — meaning she will be an owner of the Fair Haven company. Some of Ward’s coworkers already own the company. That’s because company founder Michael Vespoli is planning to retire soon and last May established an employee stock ownership plan (ESOP), giving the company over to all full-time employees who have been there for at least a year. With no heir to the company after almost ... Read more

Advice From the Field: Consider an ESOP stock plan for a small business

If you own or have the inclination to own a small business, take time to become familiar with ESOP basics. An ESOP is a profit-sharing stock bonus plan usually set up by the owners of a closely held business. It spreads some or all ownership to employees of that business. It is also a tax-deductible contribution and tax-deferred retirement plan. Shares are transferred to employees following legal rules, such as minimum hours worked, and value is disbursed years later, under other strict and complicated ... Read more
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