• Yewb@lemmy.world
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    4 months ago

    Generally with esops you have a couple of things:

    • vestment period (which can be a waiting year and like 20% per year) so you are not fully vested until your 6th year.

    • you cannot sell your stock to anyone for most esops you can only cash out when you quit, die, or are @ 55 years of age.

    • You can roll your money tax free into an IRA or withdrawal and pay income taxes (can only roll after 55)

    • the companies distribution policy will determine how you get your money these waiting periods can be massive but the company decides it, many are 5 years for anything other than death or 65 year retirement.

    • its a closed system where stocks are given Generally depending on salary for ammount earned yearly and the company buys them back.

    • stock valuations are done by a 3rd party to determine share price which could be zero before you withdrawal.