Is Esop A Retirement Plan? 
The IRS as well as the Department of Labor oversees ESOPs . The employee stock ownership plan was established under the IRC section 401 -LRB- a -RRB- qualified defined contribution plan as a stock bonus or money purchase plan as defined under IRC section 4975 -LRB- e -RRB- -LRB- 8 -RRB- to meet regulatory requirements . It is a great option for employees to purchase the business they work for from their retiring employer . 