The question of whether a business is a good fit for an employee stock ownership plan (ESOP) gets a lot of attention, but ESOP companies share another story worth telling. It’s about how transitioning to an ESOP can support many different types of businesses’ ongoing success.
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.
Here is the second question on the Employee Stock Ownership Plan Review Worksheet:
Here is the first question on the 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:
What are Required Minimum Distributions?
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).
The video is about 10 minutes in length and the section about employee ownership is at the four to five minute mark. This particular speech was given in regard to the 1986 Report released by the Presidential Task Force on Project Economic Justice. These remarks were made at the ceremony where President Reagan received the Report on how employee ownership could counter Communism in Central America. The first four minutes are remarks about individual rights and freedom. President Reagan in the last six minutes speaks directly about employee ownership as key to economic justice.