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Sam is a participant in RFK, Inc's ESOP. Sam has been a participant in the plan for eight years, and her account balance in the
Sam is a participant in RFK, Inc's ESOP. Sam has been a participant in the plan for eight years, and her account balance in the plan is $1,000,000 and is completely funded with employer securities. The plan defines the normal retirement age as 65 years old. Sam is 64 years old this year and would like to retire. Her adviser mentioned that she should have a more diversified portfolio. What, if anything, can she do to diversify her portfolio? A. The only way Sam can diversify her portfolio is to take a distribution of the employer stock from the ESOP and reinvest the value in a diversified portfolio. B. Sam can require the ESOP to diversify up to 25 percent of her portfolio. C. Since Sam is in the final election year, she can require the ESOP to diversify 50 percent of her portfolio. D. Sam can diversify 10 percent each year until the portfolio is completely diversified.
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