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I resigned in 2012 from a company. Do I have to wait until I am 65 or can i sell back my ESOP stock back to the company?

I know that the compnay has done it before. When I was there they cashed out all the company drivers that were layed off in 2007 and none of them were 65 yrs old. The also did it to the former President of the company and he too was not 65 yrs old.

Oct 02, 2014 by Jorge from Fontana, CA in  |  Flag
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The ESOP Plan Document will spell out what your rights are under the Plan. This document should provide details of what you can do with your ESOP stock after separation from service. I would pursue this with the Plan Administrator sooner rather than later as some plans only give you a short amount of time after your separation (ie 60 days) to exercise your rights under the ESOP. Some plans are more generous with the timeframe and will also obigate the company to buy back you ESOP shares using a specific valuationi. As Daniel mentioned above, I would consult with an advisor for help with this.

Good Luck! Mark

Comment   |  Flag   |  Jan 21, 2015 from Vienna, VA

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You will need to review the ESOP document to determine the process and rules regarding the repurchase obligation of the company. You should be entitled to have your shares repurchased by the company after separation from the company, regardless of whether you have reached 65. It always makes sense to consult with an advisor prior to making a decision such as this, since it has significant consequences.

Comment   |  Flag   |  Oct 03, 2014 from Boston, MA

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