Author Description

This publication provides practitioners and other interested people with a summary of rulings and regulations on ESOPs and related plans. It includes guidance from the IRS and the DOL through IRS private letter rulings (PLRs), DOL advisory opinions, DOL field assistance bulletins, IRS Technical Assistance Memoranda, and similar pronouncements such as the "ESOP Cadre" guidance. Regulations can be very lengthy, and here we do not summarize them in detail but rather highlight the key issues and rules. The original version of this publication appeared in 2011 and is updated yearly. The 2024 edition adds two items: (1) new guidance issued by the IRS, DOL, and Pension Benefit Guarantee Corporation affecting who must have an annual plan audit effective for plan years starting in 2023 onward, and (2) Rev. Rul. 2003-27 from 2003, requiring the basis of S corporation ESOP shares to be adjusted for net unrealized appreciation calculations.