An employee stock ownership plan is a benefit plan designed to invest primarily in employer stock. Understanding ESOP attributes and types is crucial for effective plan management and ESOP compliance.
The Employee Benefit Plan Audit Quality Center’s “Employee Stock Ownership Plans” primer, of the Topix Primer Series (download below), is your tool to comprehend:
Attributes and types of ESOPs
ESOP tax benefits and related compliance requirements
Leveraged ESOPs
ESOP valuation of employer securities
Operations and recordkeeping
Prohibited transactions exemptions