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Investing the "1042 Rollover"
(Concurrent Sessions 11)
Thursday, October 4 :: 2:25–3:10
As the selling shareholder to an ESOP, you have the option to pay the capital gains tax created by the sale, or if you are eligible, you can elect section §1042 of the Internal Revenue Code. Electing §1042 allows the selling shareholder(s) to defer the capital gains tax in connection with the sale to an ESOP, and if structured properly would result in a permanent avoidance of paying the capital gains tax.
Wells Fargo Advisors LLC
Michael McCarthy, CFP, is a managing director at Wells Fargo Advisors, LLC, with 20 years of experience specializing in leveraged ESOP transactions. Mike is the director of the financial education center for DePaul University. He is a member of the NCEO and the ESOP Association. He educates and advises clients for Wells Fargo Advisors and their affiliates, and helps to structure QRP portfolios for clients utilizing Section 1042 as a part of their ESOP transaction.