Employer Stock Ownership Plans (ESOPs)
Employee ownership that builds wealth and culture.
Retirement — Private Sector
About this plan
An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that invests primarily in the stock of the sponsoring employer. ESOPs provide a tax-advantaged way to transfer ownership to employees, reward long-term service, and align employee and company interests. NBS administers ESOPs with specialized compliance and valuation coordination.
What's Included
For Employers
An ESOP lets you transition ownership to employees while receiving significant tax benefits. NBS handles the plan administration, compliance testing, and coordinates with your independent appraiser.
For Participants
Through the ESOP, you receive shares of company stock as a retirement benefit. As the company grows, so does your ownership stake — building wealth as you build your career.
IRS Contribution Limits
Annual limits set by the IRS for tax-advantaged retirement contributions.
Elective Deferral Limit
All eligible employees
Age 50+ Catch-Up Contribution
Employees age 50 and older
Available if your plan permits.
Super Catch-Up Contribution
Employees ages 60–63 (SECURE 2.0)
Available if your plan permits.
Maximum Annual Additions
All contributions combined (employer + employee)
Age 50–59 & 64+
$32,500
Base $24,500 + catch-up $8,000
Ages 60–63 (SECURE 2.0)
$35,750
Base $24,500 + super catch-up $11,250
Combined totals assume your plan permits the applicable catch-up.
Catch-up contributions are plan-optional — your plan document governs which are available. Limits updated annually by the IRS. SECURE 2.0 super catch-up (ages 60–63) continues for 2026. View on IRS.gov →
NBS administers more than Employer Stock Ownership Plans (ESOPs)
Many employers use NBS across multiple benefit types — consolidating administration simplifies vendor management and gives your employees a consistent experience. You may also be interested in these related plans.
