Safe Harbor 401(k) Contributions Made to an ESOP

The concept of the safe harbor 401(k) plan design is to avoid the need to perform the special nondiscrimination testing applicable to 401(k) plans. Such tests are known as the average deferral percentage (ADP) test and the average contribution percentage (ACP) test.

Section 409(p) Testing

This article combines a set of essays written from 2012 to 2016 on Section 409(p), the rules that seek to prevent S corporation ESOPs from being used as abusive tax shelters.

Setting Up an ESOP? Tell Them What Is in It for You

Last weekend, I had the privilege of listening to one of my favorite ESOP people, Roger Ryberg of Windings, Inc., talk about the ESOP at his company at a conference of the Business Enterprise Institute.

United Airlines, ESOPs, and Employee Ownership

1995 was a good year for United Airlines. It was the first year under its new ESOP, which owned 55% of the company. It was also the best year for shareholders in the company's 70-year history, outperforming Standard & Poor's by 67%, increasing shareholder value by over $4 billion.

Who's Who Governing ESOPs and ESOP Companies

Often, people are confused about the exact roles and responsibilities of the numerous parties involved in the operation of a plan covered by ERISA (the Employee Retirement Income and Security Act of 1974) and the broader responsibility for the operation of an ESOP company.