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Can I "cash out" my ESOP stock at any time? I am 45 years old.?

Dec 01, 2012 by Robert from Portland, OR in  |  Flag
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5 votes
Peter C. Karp Level 20


Although each ESOP may have their own rules, in general, once you are no longer working at the company, the plan can allow you to take a distribution either as stock or in cash. Contact your former employer and ask them to walk you though the process. If the former employer is not a publicly traded company, the stock must be re-valued at least annually. The timing of the re-valuation may cause delays, so talk to your former employer about the timing as well. In order to more effectively advise you, we would need to have a call to learn more about your specific situation.

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Comment   |  Flag   |  Dec 04, 2012 from San Francisco, CA

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3 votes

ESOPs do have some restrictions to them but they normally aren't age restrictions. You will need to review your plans specific requirements for holding time but most that I help clients with have a 12-36 months holding requirement. Thus, you would be able to sell any stocks that you've held longer than this period. Again, review any documents you have on the plan or call your companies HR dept. and ask them. Good luck -Nick

Comment   |  Flag   |  Dec 04, 2012 from King of Prussia, PA

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