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ESOPs are a type of defined contribution plan designed to invest in employer stock for the benefit of the employees. Employers may make contributions in stock, in cash or may borrow in order to purchase shares. Our staff is experienced in administering all types of ESOPs including leveraged and unleveraged plans. To meet the special needs of ESOPs, our administrative services expand to include:

  • Calculation and allocation of shares released as payments are made on an ESOP loan
  • Determination of disqualified persons/prohibited allocations based on S-Corp ownership under Internal Revenue Code section 409(p)
  • Review of transactions to determine cost basis of shares acquired during the year and maintenance of cost basis of shares allocated to participants’ accounts
  • Preparation of diversification notices and election forms

In addition to our ESOP administrative services, First American Bank also offers Employee Stock Ownership Plan Financing.  If you have questions on whether an ESOP is right for your company, contact us or our Employee Stock Ownership Plan Financing Team.

Not FDIC Insured Not Bank Guaranteed May Lose Value
Not Guaranteed by any Government Agency Not a Bank Deposit
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