By Matthew Makowski An employee stock ownership plan is one of many types of retirement plans employers can offer. Like a 401(k) or IRA, those who participate receive tax benefits. This makes them qualified plans.
But unlike the humble 401(k) or IRA an employee stock ownership plan offers employees an ownership stake in the company. The intended result is to provide a quality retirement plan while keeping shareholder and employee interests in sync. Here’s how they work…
It starts with a trust. The trust then has to be funded by the employer. Once funding is secure (either borrowed from a bank or from cash on …read more
