Hello,
I wonder if anyone out there has experience or knowledge on how employee stock from an ESOP is distributed? I have a dear friend who needs to plan for retirement, has a significant amount of money in the ESOP program, yet hasn't been given the definitive rules on distribution.
She automatically receives a percentage of her salary in company stock every year, but has heard she'll have to wait 5 years after leaving the employer to access the funds, and only 250K at a time (perhaps every year, I have no idea).
She doesn't know if age is a factor. What if she is 60 will she still have to wait 5 years for the payout?
Does this sound reasonable? Does her employer get to make up rules or do they need to follow some federal guidelines?
She doesn't plan on leaving the company for another 13 years or so, but doesn't want to ask, as they may think she's planning to jump ship sooner than 65 years of age.
Anyone out there with knowledge on this subject?