They are distinctive principally in that ESOP participants accumulate shares of their employer's common stock. Tax-qualified under Code 401.
Individual accounts track each participant's benefits.
In-service withdrawals and plan loans are permitted. Accounting Rules are special for ESOPs. A KSOP is a combination 401k-ESOP that usually involves an automatic investment of an employer's matching contribution in employer stock. An HSOP is an ESOP that includes special accounts under which participating employees accumulate shares of their employer's stock for later use to pay for post-retirement medical insurance. Distributions from ESOPs.