ESOP Partners

The Internal Revenue Service released its 2025 pension plan limits. Key adjustments affecting 401(k) plans and ESOPs include: 401(k) Deferral Limit: $23,500 Annual Additions Limit: $70,000 Maximum Compensation Limit: $350,000 Catch-Up Contribution Limit (Age 50+): $7,500 Catch-Up Contribution Limit (Ages 60-63): $11,250 Highly Compensated Employee: $160,000 ESOP 5-Year Distribution Threshold: $1,415,000 ESOP Additional Year Threshold: $280,000

Demystify ESOP distributions for participants with these FAQs, covering payout timing, taxation, essential compliance rules, and more. Full article in the comments.

Building a dynamic culture that supports employees who think and act like owners is a worthy pursuit. Empowered employee owners drive productivity, efficiency, service excellence, and profitability – all contributing to their futures and an energized, healthy workplace. Is your ESOP ownership culture thriving? If not, it could be a sign that one of these top 7 pitfalls are in play and it’s time for some adjustments. Read the full article in comments.

As a qualified retirement plan, an ESOP can change the future of employee owners. The plan also impacts present-day As a qualified retirement plan, an ESOP can change the future for employee owners. It also adds value to present-day operations as a recruiting tool, exit strategy, culture shaper, and more. The benefits of an ESOP are many, and so are the responsibilities – including recordkeeping, audits, reports, and documentation. Keeping track of deadlines and to-dos throughout the year can be challenging without our administrative timeline planning tool. Get the free planner download in the comments and get a head start on organizing and managing your administrative year.

Learn how a strategic TPA cybersecurity policy keeps your participants, plan, and partnership secure. Read the full article in the comments.

Employee recognition can help your ownership culture thrive in several meaningful ways. Read about the top three in the comments.

We're grateful for clients and colleagues who share in the spirit of employee ownership and growth. Your commitment and collaboration drive everything we do, and we're proud to support and share in your ESOP success. Happy Thanksgiving from the ESOP Partners team!

2024 marks the 50th anniversary of the ESOP! Here are 3 fast facts from The ESOP Association that demonstrate how employee ownership is an essential part of the American dream: • 13% of American families – 10.3 million – hold ESOP-based interests • Collectively, employees have accumulated more than $2 trillion by participating in ESOPs • There are more than 6,200 ESOP companies across a range of industries Source: The ESOP Association

ESOPs offer flexibility as part of a company’s benefits, providing retirement value while promoting business growth. While ESOP rules require distributions for investment diversification and minimum distributions for older employees, most payouts occur upon retirement or employment termination. But, an ESOP can serve as both a retirement plan and a strategic tool for employee retention and satisfaction when enhanced with optional features, such as in-service hardship withdrawals for added financial security or dividend payments that align employee rewards with company success. We explore the pros, cons, and impact of optional distributions and the criticality of involving an ESOP consultant in decision making. Link in the comments. 👇

Selling to an ESOP can secure your legacy and help strengthen local communities in unexpected ways. Read about the 3 things to consider. Full article in the comments.