Contributing Author: Kristine Custodio Suero, Advanced Certified Paralegal In my past blog post, I discussed potential Department of Labor (DOL) and Internal Revenue Service (IRS) penalties for anyone who willfully violates ERISA as well for various compliance issues in violation of the law, and...
It's National Small Business Week! The U.S. Small Business Administration (SBA) spotlights our nation's 30 million small businesses. Register for the FREE National Small Business Week Virtual Conference hosted online by the SBA on September 22-24: NSBW Virtual Conference Schedule: Tuesday, Sept...
You've worked long and hard over many years building up the value of your company. While you now have wealth on paper, you're becoming increasingly concerned whether you will have the ability to realize the value you've accumulated in the form of current spendable cash because, as a nonpublicly t...
Here are some common QDRO questions:1. What Is a QDRO and Why Do I Need One?2. What is an alternate payee?3. Why do I need a QDRO?4. What are the benefits of having a QDRO?5. Are all QDROs the same?Click here to learn more about QDROs, and be sure to check out our QDRO Resources!
Join Founding Partner, Marc Schechter, on September 16, 2020, at the National Center for Employee Ownership (NCEO) ESOP Fall Forum, as he shares his insight on The State of ESOPs: The Next 10 Years. Butterfield Schechter LLP is also a proud sponsor of this event. The NCEO ESOP Fall Forum provide...
The Internal Revenue Service (IRS) has provided a list of Questions & Answers (Q&As) regarding Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, that provides for special distribution options and rollover rules for retirement plans and ...
ESOPs are included in Section 1110 of Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for economic injury disaster loans (EIDLs) of $10,000. Click here to read full text of the CARES Act. For more information on how to apply for the EIDL through the Small Business Administration ...
In a previous blog post, Succession Planning Strategies for the Retiring Small Business Owner, partner Marc S. Schechter discusses options for a retiring small business owner in California with regard to what to do with their company, particularly small business owners selling the company to thei...
The Internal Revenue Service announced cost-of-living adjusted limits for 2020.
Today, most realize that estate planning is an important step to make sure your family is taken care of and your property is distributed according to your wishes. Despite the importance of estate planning, many people put off making estate plans because people believe they have plenty of time to make such plans or they have difficulty addressing the issue of what will happen when they pass away. Failing to prepare a comprehensive estate plan can leave grieving family members with the burden of dealing with a complex estate, unnecessary expenses, and an inflexible distribution of assets that may be against the decedent's wishes.
Judgment Creditor AMBS Diagnostics, LLC (“AMBS”) originally sought to collect on its money judgment by levying the assets held in judgment debtor Timothy O’Brien’s (“O’Brien”) Individual Retirement Accounts (IRAs). In response, O’Brien filed a claim of exemption claiming the assets were fully exempt. The trial court ruled that the funds in O’Brien’s IRAs were fully exempt from judgment. The Court of Appeal reversed the trial court’s ruling, determining that the funds were only partially exempt under California Code of Civil Procedure 704.115(a)(3). (O’Brien v. AMBS Diagnostics, LLC (2016) 246 Cal.App.4th 942.) The Court of Appeal remanded the matter back to the trial court to determine the amount of O’Brien’s IRAs necessary to provide for the support of the judgment debtor, his spouse, and dependents upon retirement as required by California Code of Civil Procedure 704.115(e).
Happy October! Today kicks off Employee Stock Ownership Month...
Many businesses are turning towards employee ownership models for the unique benefits offered, including higher worker retention rates or, as recently noted more frequently, as a succession planning option. Business owners who are beginning to explore options for employee ownership may have q...
While 401(k)s are one of the most common retirement savings plans, there are still a lot of American workers who do not have access to a 401(k) or do not have any significant retirement savings. A new bill has passed the House that intends to increase access to retirement savings and accommod...
A congressional bill introduced in the House of Representatives proposes tax incentives for Employee Stock Ownership Plans (ESOPs). The bill is supported by the ESOP Association as legislative support to encourage more businesses to provide a way for employees to share in and help grow the co...
Employers are getting more creative in structuring benefit packages to recruit new employees and retain top workers in an increasingly competitive environment. While salary is a primary consideration, many prospective employees understand the long-term value in benefit packages, especially re...
Many businesses fail to consider the benefits of an Employee Stock Ownership Plan (ESOP) until plans for a traditional sale fall through. After transitioning to an ESOP, business owners, shareholders, and employees may wonder why they never considered employee-ownership earlier. Even the ever...
Federal legislation and lawmakers at the state level are pushing forward legislation to foster the development of more Employee Stock Ownership Plans (ESOPs) and make it simpler for companies to transition to ESOP ownership. California lawmakers should support legislation in support of ESOPs to b...
Companies looking to innovate may invest in research and development or hire outside consultants for ideas. However, one source of innovation may come from a resource the business already has. Employees and workers may understand the industry as well as the strengths and weaknesses of the bus...
In April, Colorado's governor Jared Polis signed an executive order to focus on expanding employee ownership in Colorado businesses. With more legislative activity to provide incentives and support for employee-ownership, including Employee Stock Ownership Plans (ESOPs), California's politicians ...
When business owners are eyeing retirement, they may be ignoring a ready buyer for their business standing right in front of them. After years of building the company, the founder's hope that the younger generation will take over may never materialize, leaving the owner without an exit strate...
Employee ownership is an increasingly popular way for baby-boomer business owners to pass on their company to the next generation. There are a number of financial benefits to owners selling their company to an employee stock ownership plan (ESOP). However, many business owners still focus on ...
The benefits of employee ownership can extend beyond the financial advantages for owners and workers. The focus of ESOPs for business owners is often limited to the financial value, namely providing a ready buyer for the company at fair market value and the tax benefits of selling to an ESOP....
In a recent Fourth Circuit case, an ESOP trustee was found to have caused the trust to overpay for corporate stock by almost $30 million. The court found that the trustee failed to comply with their fiduciary duty to act in the best interests of the ESOP participants. This case can be used as a...
Employee-ownership and benefit corporations are becoming increasingly popular corporate structures that offer unique benefits to multiple stakeholders. In contrast to a standard corporation that primarily benefits shareholders, a benefit corporation balances profit and social purpose. Combining...