Which plan uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement?
A) cash plan
B) Jefferson incentive system
C) deferred profit-sharing plan
D) employee stock ownership plan

Question

Quizplus · Accepted Answer

An employee stock ownership plan (ESOP) is a retirement plan that uses a trust to hold company stock in individual employee accounts, and distributes it to employees upon retirement. ESOPs enable employees to share in the growth and success of the company, while also providing tax benefits for both the company and the employees.

Which Plan Uses a Trust to Hold Stock in Individual