Employee Stock Option Plan (ESOP) Public Law 93-406

This form of retirement savings is governed by the 1974 Employee Retirement Income Security Act (ERISA) and has been granted additional tax benefits since its initial implementation. Currently, businesses operating ESOPs must include all employees in the plan that are over age 21 and work more than 1,000 hours a year. Similar to 401(k)s, earnings grow on a tax-deferred basis and may not be withdrawn without penalty until age 59