Originally Posted by Big_Hitter
google in-kind distributions from an ESOP
Looking up the in-kind distributions it looks like most of the info I find is explaining how to best take the distribution in company stock rather than cash for tax purposes. I don't believe our plan would not allow the stock to be distributed that way. Regardless what I am referring to is not taking any stock from the plan at all. The company pays a dividend into my account each year. For example if there are a million dollars in distributions that need to be paid this year the company will declare a per share dividend to generate that million dollars inside the trust. The trust holds essentially 100% of the shares. So if there are a million shares that is a dividend of $1 per share. That $1 per share would apply to all the shares equally. That $1 per share would apply to all shares that are credited to me and it would go into my account in my name. So if I have 50,000 shares that's $50,000. From what I have read I can withdraw the money from that dividend as a distribution and it is not subject to the 10% penalty for being under 59-1/2. That is what I'm trying to confirm and can't seem to get an answer on. This is not really an in-kind distribution situation I don't think unless there are aspects of it I'm not seeing yet.