Force-out from ESOP

[Guest PAL100759]

We have a 401(k) plan where the stock fund (publicly traded stock) has been converted to an ESOP for purposes of the dividend pass-through deduction. Even after implementing the automatic rollover rules, any stock in a participant accounts will need to be liquidated when we force-out accounts under $5,000. Is failure to distribute stock in this situation an issue?

PAL

[Alf]

Not if publicly traded.