ESOPs Outperform 401(k) Plans by 19%

The August 1, 2013 Employee Ownership Update discusses how the average rate of return (ROR) for ESOPs has outperformed the 401(k) plan average ROR by 19% from 1996 to 2010.  Leveraged ESOPs had an even higher average ROR.

Qualified Employer Securities (QES) and IRC Section 409(l)

Here is the second question on the Employee Stock Ownership Plan Review Worksheet:

Qualifying Employer Securities (QES)


Here is the first question on the Employee Stock Ownership Plan Review Worksheet:

Employee Stock Ownership Plan Review Worksheet



Employee Plans News - Issue Number: 2011-5 – June 22, 2011discusses how EP Determinations has formed the ESOP Cadre and is changing some procedures for reviewing ESOPs submitted on IRS Form 5300 – Application for Determination for Employee Benefit Plan during Cycles C - E:

Directed Trustees


The March 31, 2011 Employee Ownership Update is online and discusses the following:

ESOP Corporate Governance

Corporate governance is how corporations manage the business affairs of the company to achieve their corporate and shareholder objectives. Legal guidance is provided by state law, the articles of incorporation, and the corporate bylaws.

2010 Required Minimum Distributions

Last year you may have taken advantage of the waiver of the requirement to take 2009 Required Minimum Distributions (RMDs). It may be hard to believe, but we are approaching the initial 2010 RMD deadline of December 31, 2010, and there is no waiver for 2010 RMDs.

What are Required Minimum Distributions?

Making a Safe Harbor Contribution in the ESOP

If the highly compensated employees (HCEs) at your company are limited in the amount they can defer in the 401(k) plan due to the IRC Section 401(k) ADP and/or IRC Section 401(m) ACP nondiscrimination testing requirements, then a safe harbor contribution may be a good fit for you. If you make a safe harbor contribution then you are deemed to satisfy the nondiscrimination testing requirements. In addition to automatically passing the testing, you may reduce your 401(k) compliance testing expenses by not having to perform the test(s).

ESOP Corporate Governance

What is corporate governance?

ESOP Success Stories

5 ESOP Success Story Videos for Employee Ownership Month shares the success stories of 5 of the Top Small Company Workplaces that are also ESOP companies:

Keep Your ESOP On Track and On Time
12 Benefits of Incorporating an ESOP in your Business Exit Strategy

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