STOCK BONUS PLANS AND ESOPs
01.Core Concepts
Differences • Deductible limit • ESOP: 25% + loan interest • SB: 25% • Social Security integration • ESOP: Not permitted • SB: permitted • Diversification of participant’s account balance • ESOP: age 55 and 10 years of participation • SB: if publicly traded • EE contributions immediately • ER contributions after 3 years of service