J K Perry
Mar 7 2001, 11:57 AM
What steps do I need to take to terminate an ESOP, and what statues and regulations do I need to comply with for the termination? I've been going in circles trying to find out specifics. Thanks!
Bill Berke
Mar 12 2001, 06:39 PM
The rules for all qualified plans are essentially the same. There is no special breakout for ESOPS. The issues unique to ESOPS are the stock, the put options and whether or not the ESOP is leveraged. I srongly suggest you get with the lawyer who set the ESOP up - or with another qualified benefits lawyer
Kirk Maldonado
Mar 13 2001, 03:16 PM
Check out "Special Issues Affecting Termination of ESOPs," 34 Tax Management Memorandum No. 17 (1993).
John A
Mar 13 2001, 05:38 PM
Kirk, is that available elsewhere in Benefits Link or on some other internet site?
A short article on freezing or terminating an ESOP is available at
http://www.neco.org/library/freeze.html