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Merger of ESOP


LIBERTYKID

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Employer maintains both an ESOP and 401(k) plan. Employer wants to merge the ESOP into the 401(k) plan. The 401(k) plan is a prototype. It is my understanding the certain ESOP provisions must be preserved in the merger, such as the right to receive employer stock in kind, the right to diversify, and perhaps put rights. The employer's stock is publicly traded and the 401(k) plan in operation permits distributions in the form of employer stock and the right to diversify frequently.

Does the 401(k) plan has to be amended to preserve such rights and does this fact turn the 401(k) profotype into an indivdually designed plan.

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