IRS Announces 2027 COLA Plan Limits
Today the IRS announced its annual cost-of-living (COLA) increases to plan limits for 2027, which are detailed in Notice 2026-66 (PDF). The most important figures for ESOPs and related plans are:
AMERICA'S LARGEST MAJORITY EMPLOYEE-OWNED COMPANIES
This year we increased the Employee Ownership 100 to 150 to be able to highlight more companies that have large participant counts.
EO RESOURCE
Looking at everything from how well employee-owners at your company understand employee ownership to whether or not they have the tools, skills, and information to act like owners (and more), the Ownership Culture Survey gives you the tools to measure your employee ownership culture effectively. Assess your ownership culture's strengths and weaknesses, measure progress over time, set concrete goals, and focus your energy where you'll get the greatest payoff.
Become an NCEO member to access countless resources and benefits that help you navigate employee ownership. Whether you're considering a transition to employee ownership, administering an existing plan, or providing services in the field, NCEO membership connects you to essential resources and a vibrant community.
Today the IRS announced its annual cost-of-living (COLA) increases to plan limits for 2027, which are detailed in Notice 2026-66 (PDF). The most important figures for ESOPs and related plans are:
As the last working day of Employee Ownership Month winds down and we all get ready to get dressed up this weekend and hand out candy (or turn our porch lights off and go to bed early), I wanted to ...
Many ESOP companies reach a point, often a decade after the transaction, when the seller note is retired, cash flow is strong, and the board starts asking what comes next. In a recent NCEO webinar, ...
Under changes made in the SECURE 2.0 Act of 2022, the IRS has issued Revenue Procedure 2026-34 to expand the Employee Plans Compliance Resolution System (EPCRS). Under this system, plan sponsors can ...
President Trump recently signed the Retire Through Ownership Act (RTOA) into law. James Bonham of the ESOP Association says that the RTOA “strengthens confidence in the valuation process for millions ...
This session reviews the process of creating and updating the amortization schedule for an ESOP internal loan.
Understand the significant requirements that a business owner must fulfill before being able to take advantage of the tax deferral options offered by IRC Section 1042.
In this webinar, we will outline the ESOP transaction process, explain the ideal timing and identify the key decision points.
Employee ownership is a term for any arrangement in which a company’s employees own shares in their company or the right to the value of shares in their company. Employee ownership is a broad concept that can take many forms, ranging from simple grants of shares to highly structured plans. The most common form of employee ownership in the U.S. is the employee stock ownership plan (ESOP), a highly tax-advantaged plan in which employees own shares through a trust funded by the company. Other forms of employee ownership include stock options, stock grants, synthetic equity (granting the right to the value of shares but not the shares themselves), worker cooperatives, and employee ownership trusts.
If you wonder if employee ownership might be a good fit for your company, learn more about its different forms in our free booklet Who Should Own Your Business After You?. If you already know an ESOP is the most likely candidate, our prefeasibility toolkit and tax advantage calculator can help you decide next steps. For other forms of employee ownership, visit this table for a side-by-side comparison.
The NCEO and the employee ownership community can help you make the most of your ESOP. Our resource toolkits are a good place to start to learn about best practices in corporate governance, repurchase obligation, financing, and more. You can also use our readymade communications resources and join peer networking groups or leadership cohorts.
We answer common questions about being a participant in an ESOP or you can learn why you might want to work at an employee-owned company. We can also help if you are curious about what the research says or if you are looking for readymade resources to help communicate employee ownership to your coworkers.
If you are already working with employee-owned companies, our toolkits and communications resources can help you support your clients, and our publications and live and online events can keep your knowledge current (and provide continuing education credits!). If you want to learn about the field, start with What is Employee Ownership? or our ESOP prefeasibility toolkit.