HulaJoe

Thank you both for you quick input. ESOP Guy: You're right. In all the research and Googling I've done, I haven't seen anything dealing with an election other than 25%. The reason I ask is because there may be someone out the who wants a different amount (percentage) in each of the years of eligibility. Maybe because of share price or personal issues. The table from Degrand seems to be just what I was looking for. Give them the total of shares they are eligible to diversify and then ask them if the want to. If yes, how much of those shares do they want? All or some. I will check and see if our company will follow this in the decision letters that will go out. Our ESOP will be at the ten year point at EOY 2021 so we've never dealt with this before and I'm just trying to help get our ducks in a row. Also, is it common for a company to allow roll-over of diversified stock into the company 401K, whether it is a traditional or Roth?

When I am eligible for diversification, can I choose a percentage rate lower than the maximum 25%? When using the formula (EOY shares + previously diversified shares) x % - previously diversified shares, differing percentages from year to year give a negative result. Say I want to diversify 15% in the first year of the five year period. The result is 255 shares if my starting balance is 1700 shares. In year 2, I receive an additional 100 shares so my share balance is now 1545 shares (1700 - 255 + 100). If I want to diversify 6% in year two, the result when using the above formula is -147 shares. Am I missing something?