Frequently Asked Questions

Employee Ownership FAQs

Common questions about employee stock ownership plans (ESOPs), employee ownership trusts (EOTs), and other forms of employee ownership, from the basics to technical topics.

This FAQ is written primarily for business owners, managers, and advisors involved in setting up or running an employee ownership plan. If you're an employee at an ESOP company looking to understand your own benefits and rights, see our articles on Working at an ESOP Company and The Rights of ESOP Participants.

NCEO employee ownership FAQ hero (keyboard)

When companies have multiple plans, do allocation limit procedures have to be specified concerning which plan will have a reduction in contributions to meet the 415 rules?

Yes, it must be specified in each plan document.

Link to this FAQ Topic: ESOP Plan Design & Participation