Employee Stock Ownership Plans (ESOP)
An Employee Stock Ownership Plan (ESOP) is a type of tax-qualified Defined Contribution retirement plan, in which employees have partial ownership of your business.
An ESOP grants employees partial ownership of your business. This can be a highly motivating benefit.
What are the advantages of an ESOP?
- Attract, reward, and retain employees
- Buy out one or more owners
- Create a more motivated workforce
- Raise capital or build debt capacity
- Provide a takeover defense
- Establish a market for stock in a closely held business
Valuable tax advantages
Congress has created several tax incentives that make ESOPs beneficial, including:
- Tax-deductible contributions may be used to acquire company stock
- Private companies may be able to defer capital gains taxes
- Companies may be able to deduct dividends or lower tax liability
- Participants may experience tax-deferred retirement savings
Let our experience work for you
As the number one record keeper for ESOP plans, we have depth and breadth of experience in developing ESOPs and innovative products & services including MyPERLS® and Principal e-Distribution ServicesSM. Our close working relationship with others in the ESOP community and our personalized service model allow us to deliver proactive, innovative solutions that help ensure:
- A simple integration of ESOP services
- The retirement plan stays adaptable to your changing business needs
See how plan services benefit everyone
As a plan sponsor for an ESOP plan, both you and your participants will have access to premium service and solutions. Details
Realizing the full potential of your retirement program
We offer comprehensive, consolidated and streamlined retirement plan services to help meet your needs and achieve the outcomes you seek.
Already working with a Third-Party administrator?
You can also unbundle your retirement plan services with The Principal to help meet your individual needs.
Keeping You Informed
Gain insight several times a month from Jerry Ripperger, Director-Consulting at the Principal Financial Group.