Attention 401(k) Plan Advisors: Learn about ESOPs!

This article in PlanAdvisor.com urges retirement plan advisors to learn more about ESOPs and join the ESOP community as a business development opportunity. There are several points made in the article about the advantages that a 401(k) plan advisor who is also well-versed in ESOPs can bring to an ESOP company plan sponsor.

In addition, it should be noted that some ESOPs have an extensive amount of cash assets. And the Department of Labor has made it very clear that cash held inside an ESOP has to be invested prudently. So, a 401(k) plan advisor can bring the skills and methodologies used in those plans and apply them to the cash assets of ESOPs as well. In addition, because of the ESOP rules about mandatory diversification for individuals who have attained age 55 with 10 years of ESOP participation, the 401(k) plan advisor can assist in the transfer to the 401(k) plan of those amounts of employer stock converted into cash.