Select your state

Investments

ESOPs

An employee stock ownership plan (ESOP) is a retirement plan in which an employer contributes its stock to the plan for the benefit of the company’s employees. This type of plan should not be confused with employee stock option plans, which give employees the right to buy their company’s stock at a set price after a certain period of time.

In Montana (MT), an Employee Stock Ownership Plan (ESOP) is a type of employee benefit plan designed to invest primarily in the stock of the sponsoring employer. ESOPs are governed by federal law, specifically the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code. These laws set forth the requirements for establishing an ESOP, including eligibility, vesting, distribution, fiduciary responsibilities, and the tax treatment of ESOP contributions. Montana does not have specific state statutes that regulate ESOPs, so the federal guidelines are the primary governing rules. Companies in Montana that establish an ESOP provide their employees with ownership interest in the company, which can serve as an additional form of retirement benefit. It's important to distinguish ESOPs from employee stock option plans, which are compensation programs that give employees the right to purchase company stock at a future date at a predetermined price, and are not retirement plans.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Investments

ESOPs

Individual & Family Legal Plan

Articles

Montana State Code

Montana State Code

Investments

ESOPs

Articles