By J. Michael Keeling, President - The ESOP Association
No one knows the details of what might be included in the Congressional tax reform proposal expected this year. But the general talk we hear suggests some potentially good news, and some areas of concern.
First the good news: There have been no murmurings about reducing or eliminating any specific law pertaining to ESOPs. And, as of this moment, there has been no talk of reducing the generally favorable tax treatment for ERISA plans—which includes ESOPs, 401(k) plans, defined benefit pension plans, etc.
Now for the potentially concerning news: Tax bills are necessarily complex instruments, often ranging 2,000 or more pages in length. And any provision in a document that size might unintentionally affect ESOPs in a negative way.
Here are a few areas on which members of the ESOP community should keep a sharp eye: