ESOP Accounting Guide: What You Need to Know

Employee stock ownership plans (ESOPs) are a terrific benefit to employees and a smart financial tool for many businesses, but they do impact company financial statements in unique ways. In this post, we provide a quick primer on ESOP accounting so you can better understand these impacts. ESOP Accounting Authority and Background Both leveraged and…

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Top 3 Benefits of ESOP Trustee Services

ESOP trustees are people or organizations that are charged with managing the employee stock ownership plan on behalf of the plan participants. The Employee Retirement Income Security Act of 1974 (ERISA) requires all ESOPs to have a trustee to manage the plan assets. These trustees can be internal to the organization with the ESOP but…

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ESOP vs 401k for Retirement Security

ESOPs and 401ks can be valuable retirement security account options—both for employers and their teams. However, it can be tough to decide which account is best for your organization’s needs. So, let’s look at some of the differences between these two retirement vehicles so that you can decide which program best for your organization.  …

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ESOP vs. 401k: An Introduction

Ever since the establishment of the first ESOP in 1956, employee ownership has become a valuable tool for attracting and retaining top-tier talent that is loyal and vested in the success of the companies that hire them. In fact, many companies offer ESOPs in conjunction with a secondary retirement plan, such as a 401k. Offering retirement benefits such…

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Limited Liability Companies (LLCs) and Employee Ownership

Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular because of their simplicity and flexibility. In contrast with corporations, which have shareholders, the owners of LLCs are called members, and the unit of ownership is not stock but “membership interests.” The maximum number of members…

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A Comprehensive Re-evaluation Needed to Better Promote Future Retirement Security

What GAO Found Fundamental changes over the past 40 years have led to various risks and challenges for the three main pillars of the U.S. retirement system. For example, current projections indicate that by 2034, the Old-Age and Survivors trust fund for Social Security’s retirement program—the first pillar—will only be sufficient to pay 77 percent…

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