FDIC Ruling for ESOPs

History of the FDIC Ruling

  • ESOP popularity greatly increases with tax law changes of 1998
  • FDIC Favorable Ruling received on Sep 13, 2013
  • Legal opinion issued by Greensfelder, Hemker & Gale, P.C. on Sep 27, 2013
  • Provisional Patent filed with the US Patent Office on Nov 11, 2013

Explanation of the FDIC Ruling:

Explanation-of-FDIC-Ruling

FDIC Ruling Summary:

Each ESOP Plan Participant’s FDIC Insurance Coverage passes through to the ESOP Trust.

Calculation Example:

Largest owner % = 10%
$250,000 / 10% = $2,500,000 of available FDIC
Coverage per FDIC Institution