ESOPs and 404(c)

[Guest T-BONE]

Facts: 401(k) plan with enhanced match if participant elects to receive match in company stock. Employer stock match considered ESOP portion of plan. Diversification rules apply to company stock (55 and 5 years of participation).

Question: Is 404© protection available on the employer securities investment option assuming employer has satisified the laundry list of 404© requirements, or is it impossible given the application of the diversification restrictions.

[BeckyMiller]

Not sure what you are asking... If the company stock is locked up until eligible for diversification, I don't see how that part of the plan would be eligible for 404© relief...