Get the latest ESOP news
May 15, 2018
It is very common to have other qualified retirement plans in addition to an ESOP. However, you need to take into consideration the many plan compliance and administrative issues when sponsoring more than one type of plan.
April 26, 2018
Are you unsure if the ESOP trust is the right place to maintain a “significant” cash investment? This article provides insights on this common question.
April 10, 2018
Starting a new ESOP and need to get the word out? 3 tips to jump start your thoughts.
March 29, 2018
ERISA requires certain disclosures be given to participants and beneficiaries of employee benefit plans. The most common are: Summary Plan Description, Summary of Material Modifications, Summary Annual Report, and Participant Statements.
March 13, 2018
In today’s fast-paced, technology-driven life, we’re all on information overload. With our brains focusing on what’s most relevant, how do we move ESOP up on the priority list? Here are 4 factors that may help.
February 8, 2018
Learn what the experts are saying the impact tax reform may have on your ESOP. Get up to speed on the latest developments with ESOP fiduciary regulations and ESOP legislation.
November 6, 2017
Are you confused about how the differences between "recycling" or "redeeming" shares from your ESOP impacts ESOP repurchase obligation? This article provides a high level overview that identifies some pros and cons of both methods.
September 18, 2017
An investment in educating prospective employees on the value of your ESOP may help retain the candidates you desire.
September 7, 2017
Since “eligibility requirements” can apply to multiple plan features, there is often confusion by plan sponsors in these areas, and even more misunderstanding by plan participants. To help, here are some basics on eligibility.
August 18, 2017
Joseph Marx talks about when a mature ESOP begins to pose potential challenges. Bring the ESOP back in sync with company/participant goals and objectives with these alternatives, and ensure the ESOP is still delivering the right value.
August 3, 2017
In order to plan for ESOP repurchase liability, the corporation must quantify the liability and implement a strategy to fund it. These functions are the responsibilities of the board of directors of the corporate sponsor of the ESOP.
July 6, 2017
As a company evolves, the ESOP communication should, too. Recently, Clif Bar & Company teamed with our ESOP communication consultants to reinvigorate its communication.
June 23, 2017
Learn more about the IRS five-year determination letter application filing process for individually-designed plans which became effective on January 1, 2017.
June 9, 2017
Before you are finished with your ESOP plan year administration you must complete Form 5500. We answer your questions about the 5500 and how to file it.
May 25, 2017
Get details on diversification rules that apply to privately-held ESOP companies.
May 10, 2017
As ESOPs mature, the issues that need to be addressed change.
Apr. 3, 2017
Many companies say that a key challenge facing their ESOP participants is understanding the distribution policy. Find out how to provide answers in a clear and concise manner.
Mar. 28, 2017
Learn more about Domestic Relations Orders and determining if they are Qualified.
Mar. 16, 2017
Employee Stock Ownership Plans (ESOP) are proven to be a successful company ownership structure for a wide variety of architecture, engineering and construction companies (AEC).
Mar. 1, 2017
RMD regulations can be complicated and confusing, these basics can help.
Feb. 23, 2017
The secret to ESOP recordkeeping is all about being very careful when submitting your initial census data. Find out what some key items are to consider when getting ready to gather your employee records for the year.
Feb. 17, 2017
Employers who sponsor both an Employee Stock Ownership Plan (ESOP) and a 401(k) plan should be aware how various compliance tests interact with one another.
Jan. 12, 2017
A deep dive into DOL fiduciary regulations. What’s all the fuss? Plus, get details on how Missouri is spurring the development of new ESOPs with state incentives.
Dec. 29, 2016
Learn more about Prohibited Transaction Exemption (PTE) 80-26 loans and when they might be right for your business.
Dec. 16, 2016
Many plan documents often have a section that discusses missing participants and how their funds should be handled.
Nov. 23, 2016
Being employee owned is often about more than just the company or the employees. For many ESOP-owned companies it is also about the community. A great example of this is Torch Technologies, headquartered in Huntsville, AL.
Nov. 3, 2016
Our plan sponsor website underwent some key changes. In the digital age we live in today, so much information is available at our fingertips—it can simply feel overwhelming! We’ve identified key features we believe will help make your life easier.
Oct. 5, 2016
Even if you aren’t currently making distributions to ESOP participants when they leave employment in company stock, calculating the cost basis of the shares each year could save you time and money and minimize the potential for costly tax reporting errors.
Sept. 27, 2016
Would you like to save time and money and avoid costly mistakes in the administration of your ESOP? One way you may accomplish this is to work closely with your Client Service Associate (CSA) throughout the annual administration process for your ESOP.
Sept. 16, 2016
It happens to all of us, we make mistakes. Often times the consequences of the mistake are less severe if we are proactive in correcting it. This is true when a mistake is made in a qualified retirement plan.
Sept. 04, 2016
Principal® ESOP communication team created an Employee Ownership Month kit exclusively for our clients. Being employee owned is a big deal, and this cool, digital kit can kick the celebration up a notch…or three.
Aug. 30, 2016
Your ESOP administration reports are getting a facelift. You will soon see some enhancements when you log in. See what's changed.
Aug. 1, 2016
Learn more about out why communicating that your business is Employee Owned to customers should be part of your external marketing strategy.
July 1, 2016
After celebrating 40 years in the building materials industry, Franklin Building Supply knew they needed to plan for the next 40 years. To continue their success, they decided their next chapter should be as a 100% employee owned company.
June 29, 2016
We are breaking down Employee Stock Ownership Plans to look at the benefits an ESOP can bring to your business.
June 22, 2016
Find out more information on stock distributions and net unrealized appreciation when participants take a distribution.
June 6, 2016
In 2015 the IRS announced that the staggered five-year remedial amendment cycles will be eliminated effective January 1, 2017.
June 6, 2016
Find out what our business leaders and legal team have found that impacts ESOPs thus far from analyzing the DOL fiduciary regulation package.
May 26, 2016
Do you know when you are required to make distributions to terminated participants under the terms of your ESOP document? Review some examples of when ESOP distributions can or must generally be made without the consent of the participant.
May 18, 2016
ESOP trustees are compelled to consider specific steps to help manage their fiduciary liability. Review those steps here.
May 5, 2016
Our Introduction to ESOP video has won a Gold Quill award from the International Association of Business Communicators.
Apr. 6, 2016
Here are some questions and answers to get you started on investigating your defined contribution plan's forfeiture restoration provisions.
Mar. 25, 2016
Did you know you can add a matching contribution provision to an existing ESOP allowing the employer to match employee deferrals in company stock? Many ESOPs choose to do just that for a variety of reasons.
Mar. 20, 2016
The enhanced My Principal ESOP Repurchase Liability Solution® (My PERLS® 2.0) enables ESOP clients of Principal to project repurchase liabilities and provides yet another way to help ease their ESOP fiduciary responsibilities with repurchase liability forecasting.
Mar. 14, 2016
Repurchase obligation is the liability a company incurs when terminated participants are entitled to receive distributions from an ESOP. How and when payment is due varies by plan design, specifically the timing, method, and form of distributions defined in the ESOP document.
Mar. 14, 2016
Find out some insight and answers to a question posed to our ESOP consultants.
Mar. 10, 2016
With proper ESOP repurchase liability planning, a plan sponsor can avoid or at least be prepared to manage a situation where the ESOP doesn’t have enough cash available to pay its RMDs. Another approach would be to have a well-designed ESOP distribution policy.
Mar. 8, 2016
How should a plan sponsor decide the term of an ESOP loan? Review employee benefit considerations, financial considerations, and external factors.
Jan. 15, 2016
A "trickle in" ESOP strategy can accomplish the goal of getting stock into the accounts of employees but often at a fraction of what it costs to implement a more complex leveraged ESOP transaction.
Dec. 17, 2015
Many ESOP transactions occur at or near the end of the year. Follow these guidelines for communicating a second stage transaction.
Nov. 2, 2015
Recent information from the Internal Revenue Service (IRS) has provided some needed insight on the ESOP diversification rules that can help ease some of the timing pain experienced in this area.
Oct. 19, 2015
Effective communication when delivering ESOP mesages is important because it supports employee awareness, engagement, and an overall understanding of the ESOP.
Oct. 15, 2015
When Odell Brewing Company decided to implement an ESOP, it was all about making a co-ownership culture – reality.
Oct. 12, 2015
Sustainability is the ability to thrive as a viable business entity, whether as an ESOP owned company or in another form of ownership.
Sept. 10, 2015
ESOP is an investment in the future of the company, you can harness its power to help benefit both the company and the employees.
Sept. 8, 2015
Participation in regional and national ESOP conferences is a part of a continuous effort to expand our depth of industry knowledge and better serve our clients.
July 20, 2015
Communication committees can help employees embrace their role in an employee-owned company.
July 1, 2015
Answers regarding how the Subchapter S Corporation Cost Basis should be adjusted in an ESOP.
July 1, 2015
Completing a feasibility study can help to make informed decisions.
July 1, 2015
How an employer can help ensure retirement readiness among its employees.
April 1, 2015
Engaging employees isn't quick or easy - but it is totally possible, learn more here.
April 1, 2015
What are the due diligence requirements of ESOP fiduciaries and company Board of Directors following 2014 Supreme Court findings?