This Employee Benefit Plan Audit Quality Center (EBPAQC) primer provides a general understanding of employee stock ownership plans (ESOPs). ESOPs are defined contribution pension plans that invest primarily in the stock of the plan sponsor.
This primer discusses:
ESOP attributes and types of ESOPs
operations and recordkeeping
leveraged ESOPs
tax benefits and related compliance requirements
prohibited transactions exemptions
valuation of employer securities
accounting and auditing resources