espp’s and sars
I have a client who has an essp (thats what he said) but I think it may be an espp, in addition, he has a sars
the company is no longer a publicly traded company, it was at one time, he has a large sum in the essp or espp
he was told by the company that neither plan are eligible for rollover. I am not familiar with these plans too much
he further said that he was told he could take out over 5 years to help with taxes??
I just need to help him with what options he might have
can you shed any additional light on this or offer me resources to go to
thanks
Permalink Submitted by Alan - IRA critic on Wed, 2019-10-02 02:49
An ESPP is not a qualified plan and never eligible for rollover. What is a sars? Do you mean a SARSEP IRA? If so, the balance in a SARSEP can be rolled over anytime like a regular SEP IRA. However, your mention of the 5 year period suggests that instead of an ESPP, this might be an ESOP plan. Please clarify and also advise whether client has separated from service.
Permalink Submitted by David Mertz on Wed, 2019-10-02 03:22
Stock appreciation rights are also not a qualified retirement plan and not eligible for rollover.