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Can I borrow money from my Employee Stock Ownership Plan?

Mar 21, 2012 by Christopher from Highlands, TX in  |  Flag
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It is my understanding that an employee that is participating in an employee stock ownership plan known as an ESOP can only borrow against their plan in order to buy more shares in the company or a small number of shares in another company. The employee cannot use the ESOP to borrow money for instance to take out a mortgage or an auto loan. In addition, the employee does not receive full ownership rights, such as voting, from the stock in the ESOP, and a plan manager that the company selects manages the ESOP.

Comment   |  Flag   |  Mar 21, 2012 from Loveland, OH

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