• KSOP is a qualified retirement plan that combines an Employee Stock Ownership Plan (ESOP) with a 401(k).

  • Companies that offer these plans match employee contributions with stocks, not cash.
  • KSOPs are defined benefit plans because companies can reduce the administrative costs of running individual ESOPs and 401(k)s.
  • There are lower initial costs associated with KSOP.
  • KSOPs carry additional risk for planholders beyond the risks associated with 401(k)s.