Leaders in ESOP Consulting

Employee stock ownership plans (ESOPs) give employees a meaningful connection to your company—through actual ownership. At Conrad Siegel, we make ESOPs simple. From plan design and administration to repurchase studies and recordkeeping, we handle it all.

We can even manage your ESOP and 401(k) under one roof, giving you the convenience of a single provider for both retirement plans.

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ESOP: TPA, Recordkeeping, & More

ESOP Administrative Services:

Annual participant statements and plan sponsor reports
Online access for participants and plan sponsors
Participant education covering basic to intermediate topics
Benefit distribution processing
Diversification election processing
Mailings for voting purposes and dividend payments
Form 1099-R and 945 generation
Annual compliance testing, including anti-abuse testing for S corporations
Form 5500 preparation, with related schedules
Repurchase obligation studies
Plan design consulting

Roth ESOP Administrative Services:

Track separate Roth ESOP Accounts
Determine Roth election eligibility
Distribution, collection and tracking of Roth elections
Provide participant education and support regarding their Roth election options
Prepare and distribute the 1099Rs for the Roth election taxable income

ESOP Investment Services

For mature ESOPs with accumulated non-stock assets, Conrad Siegel can also provide investment advisory services.

Explore Investment Advisory Services

What makes our ESOP consulting unique?

Custom

You and your plan won’t be forced into a box. We’re flexible and we’ll work with you to develop a plan that works for your people – no matter the size or complexity.

Efficient

We do the heavy lifting when it comes to the administration and compliance of your ESOP so you can focus on running your business.

ESOP & 401(k)

We provide full administration for both ESOPs and 401(k)s. You get a team that manages your entire retirement program.

Simple

We make it easy for your people to understand the ESOP. Our employee education is direct and to the point.

Client Case Study

Simplifying how an ESOP & 401(k) can work together for a leading HVAC company

With such rapid growth, Conrad Siegel had to structure an integrated ESOP and 401(k) plan strategy for HB Global that specifically considered their aggressive growth strategy. This would keep HB Global focused on growing the business while Conrad Siegel automated all facets of these plans, including conversions and onboarding employees from their former plans.

Case Study

“Conrad Siegel provided us with the essential guidance when we recently underwent an ESOP transaction. They recognized our need to understand the nuances and took the time to explain the details. When timing became critical, we appreciated their responsiveness to both the company’s and our employees’ questions. With Conrad Siegel, we continue to maintain a solid foundation for the future success of our ESOP.”

– Groundwater Sciences Corporation

ESOP FAQs

What is an ESOP?

An ESOP (Employee Stock Ownership Plan) is a qualified retirement plan that primarily invests in the sponsoring company’s stock. It’s often used as a way for a business owner to sell their shares while providing employees with a retirement benefit.

How does an ESOP work?

A company can contribute cash or stock to the ESOP, or borrow money (in a leveraged ESOP) to buy shares. Employees earn shares over time, and upon leaving the company, they receive the cash value of their shares. Private companies must perform an annual valuation to determine share value.

What are the main benefits of having an ESOP?

ESOPs offer significant tax advantages for both companies and employees. Contributions are tax-deductible, and employees don’t pay taxes until they receive distributions. ESOPs can also enhance company performance through increased employee motivation and ownership.

What should companies consider before setting up an ESOP?

Companies should evaluate their cash flow, management succession, and willingness of owners to sell. Legal and valuation experts must be involved, and an internal team should be prepared to manage and communicate the ESOP effectively.

What types of companies offer ESOPs?

Many different types of organizations offer ESOPs. These companies range from Fortune 500 firms to small, closely held private businesses across various industries.