How Does an ESOP Work?

An employee stock ownership plan, commonly known as an ESOP, is a retirement plan that is somewhat similar to a 401(k). However, an ESOP is usually company-funded with stock from the employer. Although ESOPs have been in use for years, misconceptions exist as to how an ESOP works. Forming an ESOP The employer company sets the ESOP in motion by creating an employee stock ownership trust (ESOT), which is sometimes Read More

Three Reasons to Offer an ESOP to Your Employees

As the employment landscape changes, employers may search for benefit options that provide value to their employees and their business. One possibility that is sometimes overlooked is the employee stock ownership plan or ESOP. Similar to a profit sharing plan, an ESOP invests in the stock of the employer thereby creating a situation where the employer and employees share ownership of the business. Since ESOPs offer Read More

December 2017 Newsletter | Tax Bill Impacts | New HBL Video Released | News and Events

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November 2017 Newsletter | Is an ESOP Right for Your Company?

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September 2017 Newsletter | Leah Singleton Brings ESOP Experience to Hall Benefits Law

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October 2017 Newsletter | Health and Welfare Plan Inflation-Adjusted Limits for 2018

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Pre-Approved Plan Program Extended to Include Cash Balance Plans and Employee Stock Ownership Plans (ESOPs)

On June 8, 2015, the Internal Revenue Service (IRS) issued Revenue Procedure 2015-36 (the “Revenue Procedure”), updating existing guidance on pre-approved plan (including master and prototype (M&S) and volume submitter (VS) plans) applications for opinion and advisory letters. It also opens the pre-approved program to cash balance plans and ESOPs. The Revenue Procedure modifies and supersedes Revenue Procedure Read More