Recommend Our Site to Your Friends!

Print This Page

Subject:   ESOP stocks for cash
Date:   Fri, 2 May 2003
From:   Anonymous

I am currently employed by a privately held company. I am 100% vested in my ESOP plan and have about $50,000 in my account. Is there any way I can sell within our outside the company for cash? Thank you.

Answer

Date:   30 May 2003

Hello,

You might be able to. I don't have enough details to answer your question.

I suggest that you discuss this with the person responsible for administering the plan at your company. ESOPs for privately-held companies usually have a buy-sell agreement attached to them where the company buys the employee's shares.

Good luck!

Mike Gray

For more answers to our readers' questions and to learn about new tax developments relating to employee stock options, subscribe to our newsletter, Michael Gray, CPA's Option Alert!

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.