One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio . Which of the following statements is correct about an ESOP that defines normal retirement age to be 66 ?

1. An employee may require that 25 percent of the account balance be diversified so long as he / she is age 65 and completed 10 years of service .

2. An employee may require that 50 percent of the account balance be diversified during their sixth & final year of their qualified election period that begins when the employee is deemed a qualified participant .

A. Neither 1 nor 2

B. 1 only

C. 2 only

D. 1 and 2