Employee Stock Ownership Plans

An Employee Stock Ownership Plan (ESOP) is a qualified defined contribution retirement benefit plan governed under provisions of the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (commonly referred to as “ERISA”). Functionally, an ESOP utilizes income tax deductible “contributions” from its sponsoring employer or employers to purchase and hold sponsoring employer’s securities. The ESOP holds the sponsoring employers’ securities for the benefit of the ESOP’s participants (employees qualifying to participate in the ESOP of a sponsoring employer). An ESOP is unlike other “qualified” retirement plans in that the ESOP Trust (commonly referred to as an “ESOT”) is designed to primarily hold stock of the sponsoring employer for the benefit of the “participants.”

Core Corporation focuses its ESOP practice on the following services:

  • Performing ESOP feasibility and plan design
  • Coordinate ESOP financing
  • Directly handle the ESOP transaction
  • Communicating to employees the benefit of an ESOP
  • Assisting in the design and execution of executive compensation plans
  • Perform feasibility on potential acquisition opportunities
  • ESOP plan governance and compliance services
  • DOL examinations and DOL Voluntary Fiduciary Correction Program issues
  • IRS examination and IRS Voluntary Correction Program issues
  • ESOP terminations

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