Publications for ESOPs (Employee Stock Ownership Plans)

Companies that maintain ESOPs are legally required to provide enough cash to the ESOP to meet the distribution and diversification requirements of the ESOP (referred to as "Repurchase Obligation").

Qualified retirement plans, such as 401(k) Plans, ESOPs, Profit Sharing Plans and other retirement plans, virtually always provide a benefit payable to a beneficiary following the participant’s death.

ESOP fiduciaries, generally the ESOP committee or the ESOP trustees, must make several decisions on behalf of the ESOP and may be subject to legal exposure if their decisions are not consistent with ERISA.

Several years ago, Congress permitted S corporations to sponsor employee stock ownership plans ("ESOPs").

For 25 years now, employee stock ownership plans (ESOPs) have played an important role in assisting a company with its ownership and management transition strategy