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ESOPs and Employee Ownership in 20 Years

  
  
  

The latest Employee Ownership Blog post, Future of ESOPs, contains a discussion of where the ESOP industry sees ESOPs and employee ownership in twenty years:

  • With the global economy, business practices are changing fast and companies that have an advantage over their competitors are going to flourish. An ESOP will be a competitive edge.
  • With education of business leaders and owners, we will begin to see more ESOP companies as people realize the potential employee ownership can bring to the company.
  • Companies understand that employee ownership is a performance booster and will begin using it to make the company more competitive here at home and abroad.
  • Universities will take the lead in research efforts and redefine the way capitalism works using employee ownership as the model.
  • Models of employee ownership will become more diverse as well as more common in the next 20 years.
  • Government relations efforts are now more important than ever and we need to stay on top of the game.

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2012 IRS Pension Plan Limits

401(k) Deferral Limit - $17,000

Annual Additions Limit - $50,000

Maximum Compensation Limit - $250,000

Catch-Up Contribution Limit - $5,500

Highly Compensated Employee - $115,000

ESOP 5-Year Distribution Threshold - $1,015,000

ESOP Additional Year Threshold - $200,000

2012 Pension Plan Limits

1989 - 2012 Plan Limits