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Can We Keep an Existing Benefit Plan if an ESOP is Set Up?

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A common question is if a company can keep an existing benefit plan if they have an ESOP? Watch our video for the answer.

Transcript

ESOPs are compatible with the entire range of qualified retirement plans.  Typically where a company has a 401(k) plan they leave the 401(k) plan in place even after they adopt the ESOP.  ESOPs are less prevalent in combinations with defined benefit plans. In fact, defined benefit plan ESOP plan offsets, as we would call them, aren’t allowed. Generally speaking though, those companies that do offer an ESOP also offer another form of retirement plan alongside the ESOP. 

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