Frequently Asked Questions

Employee Ownership FAQs

Common questions about employee stock ownership plans (ESOPs), employee ownership trusts (EOTs), and other forms of employee ownership, from the basics to technical topics.

This FAQ is written primarily for business owners, managers, and advisors involved in setting up or running an employee ownership plan. If you're an employee at an ESOP company looking to understand your own benefits and rights, see our articles on Working at an ESOP Company and The Rights of ESOP Participants.

NCEO employee ownership FAQ hero (keyboard)

If you move segregated ESOP accounts into a 401(k) plan will these assets retain the same distribution rules they had in the ESOP or will they now be subject to the 401(k) rules?

They will retain the ESOP rules.

Link to this FAQ Topic: Distributions & Repurchase