Diversify, Yes or No! It's got me crazy!!!!!!!

[Guest Troubles]

I need answers,please. I'm 62 years old and 24

years with my company. Our ESOP started 1976. We have 5 plants. We are a private company, in New Jersey.I went on the internet to see if I could get an answer to a question. It turns out I have

a lot of questions, but no answers. I picked one question to get answered. DIVERSIFICATION? These, I.R.S., D.O.L., N.C.E.O.,ESOP Assoc., and other

web sites say, YES! I asked my company they say

no. I contacted the above agencies, I can't get

a yes from anyone.

Thank You

[RLL]

Hi Troubles ---

The ESOP diversification requirement of IRC section 401(a)(28) applies only to stock acquired by an ESOP after 1986. Is it possible that your company's ESOP has not acquired any additional shares of stock after 1986?

Also, the diversification rule applies only to "statutory" ESOPs, as defined in IRC section 409(a) or 4975(e)(7). Is it possible that your company's "ESOP" is actually a stock bonus plan that is not a statutory ESOP?

[mbozek]

Troubles: Get a copy of the summary plan description for the plan and see what its says about diversification of investments. Also is you employer publicaly or privately held, e.g. is the stock traded on an exchange?

[QDROphile]

The diversification window is only required to be open for 6 years. If yours opened at age your 55, it may now be closed. If you missed it, you may ponder the interesting question of whose responsibility it is that you missed it. What is adequate notice to you, both content and timing? Check your summary plan description to start.