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Other Retirement Plan Strategies

ESOP Trust Transactions

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.

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
  • Companies may be able to deduct dividend or lower tax liability
  • Participants may experience tax-deferred retirement savings