[benefits] blog logo

ESOP Guidance Issued

The IRS issued guidance regarding when employer securities are readily tradable on an established securities market or established market. If an employer?ÇÖs securities are not considered readily tradable, the employer?ÇÖs ESOP must satisfy additional requirements, including requirements regarding voting rights, distribution rights, and valuations. The guidance clarifies that for purposes of these requirements, readily tradable on an established securities market means the security is traded on a (1) registered national securities exchange or (2) foreign national securities exchange supervised by a governmental authority and, generally, the security is included on the FTSE Group All-World Index. The guidance is effective for plan years beginning on or after January 1, 2012. For plans that have securities on a foreign exchange, the guidance is effective for plan years beginning on or after January 1, 2013. Taxpayers can rely on the guidance after March 14, 2011.

The lawyers of our Employee Benefits and Executive Compensation Practice Group are readily able to assist companies on a nationwide basis with implementing sophisticated benefit plans and providing answers to their most challenging compensation issues. Additionally, our lawyers are well aware of the daily employee benefits challenges facing companies of all sizes and are capable of helping in-house lawyers and human resources personnel with the day-to-day advice and guidance necessary to properly administer employee benefits plans.

Related Topics: ,

Leave a Reply

March 2011
S M T W T F S
 12345
6789101112
13141516171819
20212223242526
2728293031  

Archives