Curriculum Guide · Courses
ESOPs and Employer Stock in ERISA Plans
LL.M Seminar 952 | 1 credit hours
This course will focus on employee stock ownership plans (ESOPs), which are tax-qualified retirement plans that are governed by ERISA and the Internal Revenue Code. Legislation enacted since ERISA provides ESOPs with special treatment in order to encourage broad ownership of the employer by employees. The special treatment includes an ERISA exemption to permit loans between the employer and the ESOP, as well as numerous tax benefits for various ESOP design structures. The course covers the various ERISA and Code requirements applicable to ESOPs, as well as applicable tax and labor interpretive provisions. The course will cover modern applications of ESOPs including: (1) the economics of a leveraged ESOP; (2) ESOPs as de vices to promote employee productivity and the related risks where retirement savings that are not diversified; (3) ESOPs as an exit strategy for a business owner; (4) the deductibility of dividends paid on employer stock held by an ESOP; and (5) tax deferral for business income provided through ESOP ownership of S corporations.
Prerequisite: Either Retirement Plan Design and Taxation OR Retirement Plan Qualification Requirements.