Five Things Employee Owners Need to Know About Their ESOP

Participants in Employee Stock Ownership Plans, or ESOPs, can find answers here about contributions, finding out their ESOP’s value, timing of distributions and more.

Four employees have a discussion around their desks.
(Image credit: Getty Images)

Editor’s note: This is part three of a six-part series in which Peter Newman, CFA, of Peak Wealth Planning, explains the benefits of employee ownership for the U.S. workforce. There are more than 6,500 Employee Stock Ownership Plans, or ESOPs, in the U.S. covering almost 14 million employees. Part one is Five Key Advantages to Working at an Employee-Owned Company. Part two is How Does an Employee Stock Ownership Plan, or ESOP, Work?

For participants, an ESOP, or Employee Stock Ownership Plan, can be an important component of their retirement income. Now that you’ve read about the benefits of company paid contributions, learned the advantages of working for an employee-owned company and know how ESOPs work, let’s dive into five essential questions employees should learn about their retirement benefits.

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Peter Newman, CFA
President, Peak Wealth Planning, LLC

Peter Newman founded Peak Wealth Planning, LLC in 2014 to provide financial planning and investment management for individuals who built their wealth through ESOP participation, business ownership or real estate investing. He helps families diversify their concentrated stock, reduce estate taxes, preserve wealth and generate stable retirement income. Peter holds the Chartered Financial Analyst designation, considered by many to be the gold standard for investment management.