In order to be sure of your options, it's best to check the summary plan description (SPD) for the plan. The options may vary for different plans. This should include an explanation of the rules, including diversification options. If you have online access to your KSOP account, you may also have online access to your plan's SPD. If not, your plan administrator should be able to provide you with a copy.

The Pension Protection Act of 2006 (PPA) does require publicly traded companies to permit employees to liquidate employer stocks and reinvest in other assets at any time, providing:

  1. The stocks were purchased with the employee's salary deferral contributions, or
  2. The stocks were purchased with employer contributions, and were purchased after the employee completed three years of service with the employer.

For more on diversification, read The Importance Of Diversification.

This question was answered by Denise Appleby
(Contact Denise)

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