Section 409(p)'s Economically Substantive Succession Planning Policy Implications

Congress frequently uses disqualified person criteria benchmarks in effecting policy bright lines. The Section 409(p) S-Corporation ESOP disqualified person criterion proves no exception to this legislative practice. Historically, commentators have underscored the anti-abuse consequences deriving the provision’s 2001 enactment.

To date, no one has pointed to the economic reality that Section 409(p)’s disqualified person criterion effects Congressional policy favoring economically substantive succession planning as a means for sustaining contributions to America’s productivity beyond the limits of the entrepreneur’s semi-retirement, complete retirement, and physical life. The article on which this webcast is based fills that void.



Lesson 1.


Lesson 2.

The Succession Planning Progressive Quaternary Order Hierarchy

Lesson 3.

Section 409(p) Diversification

Lesson 4

Section 409(p) Implications for the Succession Planning Quaternary Hierarchy

Lesson 5.



**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to leighanne.conroy@acpen.com.


*Recognize retirement plan characteristics that correctly distinguish ESOPs from all other retirement plans  

*Recognize Professor Simons’ Four Levers correctly relate to management control system definitions  

*Recognize Kaplan and Norton’s Balanced Scorecard perspectives correctly relate to management control system definition strategies  

*Recognize the Four Levers and Four Perspectives correctly distinguish the Four Stage of economically substantive succession plan  

*Recognize that, rather than view Section 409(p) as an anti-abuse provision owing to its disqualified person criterion, it is more correct to view the provision as impounding Congress’s economically substantive succession planning policy objectives in the disqualified person criterion’s complement


*General Employee Stock Ownership Plan characteristics  

*S corporation ESOP tax law evolution  

*Section 409(p) viewed as an anti-abuse provision versus a policy objective provision  

*Hierarchical quaternary order economically substantive succession planning management control system strategies and definitions:  The Entrepreneurial Stage, The Protectionist Stage, The Separate Entity Stage, & The Social Policy Stage  

*The Section 409(p)(4)(A)(ii) disqualified person criterion’s implications for deemed owned share diversification  

*Section 409(p)’s implications for the (C: S) corporation ESOP transition  

*Section 409(p) economically substantive succession planning policy continues contributions to America’s productivity beyond the limits of the entrepreneur’s semi-retirement, complete retirement, or physical life  

Additional Information

Designed For

*Enrolled Agents
*Enrolled Retirement Plan Agents
*Self-directed Retirement Plan Fiduciaries, Custodians, and Administrators
*Self-directed Retirement Plan Account Holders
*Tax Return Preparers



Advanced Preparation



This webcast is an intermediate continuing education webcast.
It is assumed the webcast participant has achieved the following related webcasts in advance of this webcast: Retirement Plan Management and Investment Risk Diversification Standards, Management and Investment Risk Diversification Indices, Prohibited Transaction Chinese Walls, Problematic Self-Directed Retirement Plan Activities, Changing ERISA's Disqualified Person Criterion, Got Your Assets Covered, & Resolving the Passive Custodian Paradox

Field of Study


Course Number


Level of Knowledge


Add to Cart

View All Courses