How will distributions from the ESOP be treated under the settlement?
A.7 As described in Q&A-6, if the ESOP ceases to be qualified, any distributions from the ESOP that were made after the plan ceased to be qualified and that were rolled over to another retirement plan must be distributed from the other retirement plan as an amount not eligible for rollover. If the rollover was to an individual retirement account (IRA), the individual may be subject to the IRC Section 4973 excise tax on excess contributions to an IRA.