Share this Page URL

Lesson 14. Employee Stock Ownership Plans > The 30-Second Recap - Pg. 68

Employee Stock Ownership Plans 68 · ESOPs are qualified retirement plans and subject to all the rules and conditions called for by law. · Employees pay no taxes until they begin taking distributions after retirement. If they pull money or stock out early, income taxes are due along with a 10-percent penalty. · ESOP participants should make sure that company stock is not their sole investment to fund retirement.