KSOP
Definition of 'KSOP'A qualified retirement plan that combines an employee's stock ownership plan (ESOP) with a 401(k). Under this type of retirement plan the company will match employee contributions with stock rather than cash. KSOPs benefit companies by reducing expenses that would arise by separately operating an ESOP and 401(k) retirement plans. |
|
Investopedia explains 'KSOP'Using a KSOP is a great option for companies when their shareholders are looking to sell their shares in the company. The KSOP instantly creates a market with sufficient liquidity that is needed for those shareholders wishing to sell their stake. KSOPs also provide added motivation to employees to ensure the profitability of the company. This is because the added profitability would directly enhance their retirement plans. |
Related Definitions
Articles Of Interest
-
401(k) Plans For The Small Business Owner
If you own a business, this may be the plan for you! Find out about its benefits and eligibility requirements. -
6 Ways To Maximize The Value Of Your 401(k)
From matching employer contributions to proper asset allocation, we'll tell you how to get the most out of your plan. -
A Closer Look At The Roth 401(k)
Learn about the benefits and drawbacks of this new investment account and see if it's right for you. -
The Hidden Fees In 401(k)s
Learn about the conspicuously disclosed fees that lurk within your 401(k) investments. -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Maintaining Work/Life Balance For Financial Professionals
Maintaining work/life balance is a challenge for most professionals in the finance industry, but it doesn't have to be that way. -
Should You Buy An Annuity?
For many cash strapped seniors an annuity sounds like the perfect solution. And it can be if you think you’ll outlive your mortality date. The only trouble is that the insurance companies offering ... -
The Diner's Guide To Tipping
A look at the standards for tipping service staff in some popular vacation destinations, and the rationale for each custom. -
Analyzing The Best Retirement Plans And Investment Options
Understanding the various retirement investments - from annuities to 401(k)s and everything in between - is crucial to reaching your retirement goals. Here, we examined many of the popular investments ... -
Is Real Estate Ever A Wise Investment For Retirees?
Being a landlord sounds like the path to riches: you buy some property, rent it out and watch the checks come in every month. The reality is that it’s a young man’s game. There’s just too much ...
Free Annual Reports