KSOP
A qualified retirement plan that combines an employee's stock ownership plan (ESOP) with a 401(k). Under this type of retirement plan the company will match employee contributions with stock rather than cash. KSOPs benefit companies by reducing expenses that would arise by separately operating an ESOP and 401(k) retirement plans. Investopedia Says:
Using a KSOP is a great option for companies when their shareholders are looking to sell their shares in the company. The KSOP instantly creates a market with sufficient liquidity that is needed for those shareholders wishing to sell their stake. KSOPs also provide added motivation to employees to ensure the profitability of the company. This is because the added profitability would directly enhance their retirement plans. Related Terms:
401(k) Plan
Economic Growth And Tax Relief Reconciliation Act of 2001 - EGTRRA
Employee Retirement Income Security Act - ERISA
Individual Retirement Account - IRA
Qualified Retirement Plan
Roth 401(k) KSOP
A qualified retirement plan that combines an employee's stock ownership plan (ESOP) with a 401(k). Under this type of retirement plan the company will match employee contributions with stock rather than cash. KSOPs benefit companies by reducing expenses that would arise by separately operating an ESOP and 401(k) retirement plans. Investopedia Says:
Using a KSOP is a great option for companies when their shareholders are looking to sell their shares in the company. The KSOP instantly creates a market with sufficient liquidity that is needed for those shareholders wishing to sell their stake. KSOPs also provide added motivation to employees to ensure the profitability of the company. This is because the added profitability would directly enhance their retirement plans. Related Terms:
401(k) Plan
Economic Growth And Tax Relief Reconciliation Act of 2001 - EGTRRA
Employee Retirement Income Security Act - ERISA
Individual Retirement Account - IRA
Qualified Retirement Plan
Roth 401(k) |