Employee stock ownership plans (ESOPs) are a major engine of wealth creation and retirement security. Total contributions to them exceeded $107 billion according to the National Center for Employee Ownership’s analysis of Form 5500s for the 2022 filing year.1 ESOPs paid over $156 billion to plan participants in 2022.2 Because most ESOPs don’t require employee contributions, more workers are likely to participate, especially those who are financially unable or unwilling to defer a portion of their compensation. The average ESOP account balance is more than twice that of a company offering only an Internal Revenue Code Section 401(k) plan.3
Net Unrealized Appreciation
Net unrealized appreciation (NUA) is the appreciation in the value of the…
